Florida, US – Carrier is selling its commercial refrigeration business to Chinese-headquartered Haier, its joint venture partner of 22 years. The transaction is expected to close in the second half of 2024.
The business’s enterprise value of $775m includes about $200m of pension liabilities, and represents about 16.5x of the projected EBITDA for 2023. Carrier expects net proceeds to exceed $500m, which it will use to reduce debt.
Carrier Commercial Refrigeration employs more than 4000 people around the world, with its sales and service network including Europe and Asia-Pacific. Brands included in the sale include Profroid, Celsior and Green & Cool. The cold chain and transport refrigeration parts of Carrier’s business are not being sold.
“Following our decision to exit the commercial refrigeration business and a robust competitive process, we identified Haier as the right fit to grow the business moving forward, building upon our successful 22-year refrigeration partnership with them,” said David Gitlin, Carrier’s chairman & CEO. “Executing this definitive agreement demonstrates continued progress in our portfolio transformation.”
Haier Smart Home’s chairman Li Huigang said the acquisition will help the company establish its commercial refrigeration platform. “[It will] enable the company to capture additional growth opportunities by expanding its presence to food retail refrigeration and cold storage.”