In a move that signals increasing interest in innovation in intelligent climate and energy solutions, Carrier Global Corporation picked up Viessmann Climate Solutions for €12 billion in cash and stock issued directly to the Viessmann Group with a long-term ownership commitment that enhances Carrier’s strategy to capitalize on the rapid energy transition in Europe.
The combination creates a comprehensive and differentiated suite of sustainable technologies and services, which Carrier can scale globally, transforming Carrier into a pure-play, more focused, higher growth global market leader.
The cash and stock transaction represents approximately 13X synergized projected 2023 EBITDA. A privately held company with a 106-year legacy of innovation, Viessmann Climate Solutions provides Carrier with an iconic, premium brand in the highest growth segment of the global heat pump and energy transition markets.
“The acquisition of Viessmann Climate Solutions is a game-changing opportunity,” said David Gitlin, Chairman & CEO, Carrier. “Climate change, sustainability requirements and geopolitical factors are driving an unprecedented energy transition in Europe. Accelerated by government regulations and incentives, the transition creates a significant, long-term growth opportunity.”
With 70 percent of its business consisting of heat pumps and related accessories, solar PV, batteries and services, Viessmann Climate Solutions is a critical leader in Europe’s energy transition.
“The Viessmann Climate Solutions acquisition and planned exit of Fire & Security and Commercial Refrigeration will further simplify our business portfolio and accelerate our strategy to establish Carrier as the global leader in intelligent climate and energy solutions,” continued Gitlin. “Recent strategic actions, including the Toshiba Carrier Corporation acquisition and the sale of Chubb, have aligned our company with the most significant megatrends impacting the heating and cooling industry, including managing climate change and delivering on net zero emissions targets. While Fire & Security and Commercial Refrigeration are great businesses with incredible, customer-focused teams, the planned exits sharpen the strategic focus Carrier has gained through its 2020 spin-off from United Technologies. With Viessmann Climate Solutions, we are positioning ourselves to be the global climate solutions champion, poised to deliver higher growth and superior shareowner value.”
Max Viessmann, CEO of Viessmann, said, “Our purpose is to create living spaces for generations to come. Carrier’s global reach, broad product portfolio, financial strength and shared commitment to sustainability will enable our Climate Solutions business to fully capitalize on our innovative, integrated solution offering and maximize our impact on Europe’s independent energy transition. Following the closing of the transaction, the Viessmann Group will remain committed as a significant, long-term shareowner of Carrier, reflecting our family’s high confidence in the superior value to be created by this combination. Joining Carrier’s Board of Directors will enable me to work directly with Dave, my fellow directors and the Carrier team to realize the substantial potential of the combination of two iconic and market-leading companies.”
The Carrier and Viessmann boards of directors have each approved the acquisition, which is expected to close around the end of 2023, subject to customary closing conditions and regulatory approvals.
J.P. Morgan Securities is serving as financial advisor, while Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Linklaters LLP are serving as legal advisors to Carrier in connection with the Viessmann Climate Solutions acquisition. Goldman Sachs is serving as financial advisor and Hengeler Mueller and Davis Polk & Wardwell are serving as legal advisors to Viessmann.
