Carrier Seeks Few Billion Dollars For Fire & Security, Will Partially Spin/Split/IPO
Carrier is progressing on its plan of divesting its fire and security businesses, sharing what it hopes to be paid and adding that it will spin, split, or IPO part of the business.
For background, see April 2023: Carrier Plan To Sell Fire & Security Analyzed and July 2023: Carrier To Split Up Sale Of Fire And Security.
In this note, we examine Carrier's plans, including the potential pricing and how they aim to deal now with three different parts in the exit.
3 *****
*******'* *** *** ********* *** **** will **** ***** *****, **** *** being **** *** *** *** ********** and *********** **** ******* ** *** business ***** ****** ** * ***-**-**-********** spin / ***** ** ***:
*** ******* ********* *** ***** *** timing:
**'** ******* ** *** ****** ************, *** ** **** ** ** the ****** ****industrial **** within the next 30 days. And then the remainder will be the part that we take into the public markets [commercial *** *********** ****]. [emphasis added]
"Clean ****"
******* **** *** ** ******* ********** businesses ** ******, ******* **** ****** about **** ****** ******* ** ***** or ***, ***. *******'* *** ********** "clean ****" ** ***** ****** *** priority:
** ****** **** **** ** *** priorities ** *** ** **** ** dispose ** ***** ******, ***** ** number ***, ** **** ** ***** exit. ** **** ****** ** **** of *** ******** ****** ** **** we **** ********** **** * ***** exit.
******** *** **** **** ***** ***** balances ****. ******* **** ******** **** total **** ** **** ***** ************ (instead ** ******* ** *** ** one) *** ****** *** ************* ** selling ********** ****** *** ** ***.
"Few *******"
******* ******* ** **** * *** billion ******* **** *** ****, ** the *** ********, "*** ****** ***** on *** **** *** ******** **** that **'** ******* ** * *** billion." **** ******* ** ** **********, if *** ************, ******** **** ** "few," **** **** *** ** ***** billion, ****** **** *** "***" ** mean **** ** ****. ******* *** not **** ********.
******* **** & ********. *** ********, generates **** $* ******* ** ****** sales *** * ~**% ********* ********* margin, ** ***** ***** *********:
* ***** ***** ** ~$* ******* for ********** ** **** & ******** would ** ** **** *** * business **** * ***** ********* ****** and ****** ******* ****** (*%, *.*., so *** **** ****).
******* **** *** ****** ** ******** only *****. ** ******** ** ** be *** ******** ** *** ******* fire & ******** ******** *** *** not ********* ** ******* **** *******.
Security **** **** *******
*** **** ** *** ******** **** is ********* ***** ***, ** ******* explained:
*** ****** ******* ** ******** **** prospective ****** *** ******** *** ********** refrigeration **** *** ********** *****, ****** recently **** *** *** ************ *********** memorandum.
* ********-**** **** **** / ** attracting *********** ******** ** ** ****** many ********* ******** ****** ** ***** more ******** ** **** *** ******** business.
****** ** ******** ******* ********** ** this **** **** ** *** ******, which ** * ********. *** ********, though, ** **** *******'* ******** ********** face *********** ******* **** ***** ****** that ********* *** *****, **********, *** lagging ********** (**** *** *********** ** cloud, ******, *** ** *** ********).
Debt *********
****, *******, *******'* *** ********** *** the ******** ** *** **** ***** be **** ** ****** ****, ********* so ** ****** *** ****** ***** for****** *** ******** ******* ********, ******:
******* *** ******** ***** **** **** to *** ****** ** ****** *** by *** *** ** ****. ***** happen ******. **'** ****** ***** ****** down **** **** ** ** ******* our ******** *****. *** **'** ****** about ***** * ***** *******, ****'* a ***** ************ **** *** $*.* billion **** **'** ******* ** **** of *** ******** ***********.
Call ********* *******
****** ** *******'* *** ******* *** deals ** * ********* **** ******** conference:
Timing *** ******** **** *****?
** ****** *** ******** **** ** close *** ** ********* ****** ** the *** ** **** **** (********) or *** ********* ** *** ***** quarter. **** ***** ***** **** **** a ********** **** *** ******** ** for ******* ********* *** * ****** new **** ** ****.
**'* * ******* ******* ** ** depends ** *** ** ******* ** pay *** **** / ******** *****, etc.
******* ************:
****** **** ***** ** ******* ** a ******* **** ** ******* ** invest ** *** ********, ****** *** customers. ***** ** * ***** *********** there.
*** ***** **** ******* ** ** whether ****’** ** ******* ** ** existing ******* (* ** *****/****/*********, ** a ******* **** ****) **** ** looking ** *** ** *** ******** or ***** * ** ***** ** sell ** * ******* ******* ** get **** ******** ** **** ******?