In a strategic move to strengthen its building automation capabilities, Honeywell is set to acquire Carrier GlobalCorp.’s security division for $4.95 billion. Carrier’s Global Access Solutions business, renowned for advanced access and security solutions, electronic locking systems, and contactless mobile key solutions, will become part of Honeywell’s expanding building technologies portfolio.The all-cash deal encompasses hardware and software capabilities, including well-known brands such as LenelS2,Onity, and Supra.
The transaction is expected to be finalized by the end of the third quarter of 2024. Carrier Global anticipates net proceeds of approximately $4 billion from the sale, intending to use the funds to reduce its debt. The move comes as part of Honeywell’s strategic realignment, focusing on megatrends like automation, aviation’s future, and energy transition.
Shares of Carrier Global experienced a 4.4% rise to $52.9 in premarket trade, reflecting positive market response. In contrast, Honeywell’s shares initially declined over 2%, demonstrating the market’s mixed reactions to the acquisition.
Honeywell’s CEO Vimal Kapur, appointed earlier this year, has been instrumental in reshaping the company’s focus. The acquisition of Carrier’s security unit, with renowned brands like Onity and Supra, aligns with Honeywell’s strategy, providing access to advanced technologies in residential, commercial, and industrial security systems.
The deal is expected to enhance Honeywell’s building technologies business, which has faced challenges due to slowing revenue growth in recent months. With this acquisition, Honeywell aims to leverage Carrier’s expertise in the security sector, anticipating the move to be cash-earnings per share accretive in the first full year of ownership.
(with inputs from agencies)
The transaction is expected to be finalized by the end of the third quarter of 2024. Carrier Global anticipates net proceeds of approximately $4 billion from the sale, intending to use the funds to reduce its debt. The move comes as part of Honeywell’s strategic realignment, focusing on megatrends like automation, aviation’s future, and energy transition.
Shares of Carrier Global experienced a 4.4% rise to $52.9 in premarket trade, reflecting positive market response. In contrast, Honeywell’s shares initially declined over 2%, demonstrating the market’s mixed reactions to the acquisition.
Honeywell’s CEO Vimal Kapur, appointed earlier this year, has been instrumental in reshaping the company’s focus. The acquisition of Carrier’s security unit, with renowned brands like Onity and Supra, aligns with Honeywell’s strategy, providing access to advanced technologies in residential, commercial, and industrial security systems.
The deal is expected to enhance Honeywell’s building technologies business, which has faced challenges due to slowing revenue growth in recent months. With this acquisition, Honeywell aims to leverage Carrier’s expertise in the security sector, anticipating the move to be cash-earnings per share accretive in the first full year of ownership.
(with inputs from agencies)
