Carrier Global to Buy Viessmann

The Wall Street Journal is reporting that Carrier Global (CARR), one of our Buy List stocks, is in talks to buy Viessmann, a German industrial manufacturer, for $10 billion. The deal will be in cash and stock.

Viessmann is a family-owned company. Last year, it had sales of $4.4 billion.

Carrier is mostly known as an HVAC company but it has been working to diversify its business. Earlier, the company said it’s also looking to sell off its Fire & Security business.

From the WSJ:

Buying closely held Viessmann would further diversify Carrier’s operations outside of the U.S. Last year, the Florida-based maker of air conditioners and other types of heating and cooling equipment reported net sales of $20.4 billion, of which 60% came from the Americas and 23% from Europe, the Middle East and Africa, according to the company’s annual report.

We own Carrier and Otis (OTIS). Both were spun off from United Technologies.

Carrier, with a market value of $38 billion, is focused on expanding its refrigeration as well as its heating, ventilation and air-conditioning businesses. Last year, it acquired substantially all of Toshiba Corp.’s stake in the companies’ Toshiba Carrier Corp. joint venture for $900 million. TCC provides residential and light-commercial HVAC products including heat pumps.

Carrier’s Fire & Security division accounted for about 17% of the company’s sales in 2022. Demand for the division’s products, which are used across residential, commercial and industrial properties, was mixed in the most recent quarter, buffeted by slower new construction in some markets, management said on a conference call in February.

Shares of Carrier are down about 5% in today’s trading.

Posted by on April 24th, 2023 at 1:05 pm


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