Carrier Plan To Sell Fire & Security Analyzed

Published Apr 26, 2023 22:55 PM

Carrier is planning to sell its "Fire & Security Group" which includes LenelS2, Aritech, Supra, Onity etc. on the security side and Kidde, Edwards, et al. on the fire side.

IPVM Image

****** ***** ******** *********** **** **** ***** ** ** line **** **** ** **** ***** from ******** ********** ***, **** ***********, Carrier's *** ********** **** **** ****** discussing **** *********** *** ******.

******: ***** **, ****

******* ********* **** ********** ** **** of ** ************ ******** $**+ ******* on * **** *** * ****** heating *** ************* ********:

******* ******* ** **** *** **** & ******** *** ********** ************* ********** over *** ****** ** ****. *******'* 2020 ****-*** **** ****** ************ **** it * *******, **** *******, ****** growth *******. *** ***** ** **** & ******** *** ********** ************* **** bring ******* ***** ** *******'* ******** and *********, ***** *********** ***** **********' customers *** *********.

Sell *** / ***** *******

********* ******** ** ** ****, *** ******* ******* ** *** last ****** ** ***** ** ********* the ******* *****.

  • ******, *** ********* **** *** ******* **** *** goal ** ******* "**** ******* ******** strategies **** **** ****** **** ** maximize ***** *** ***** ********* *** shareowners" ***** ** ****, ***'* ******* was ****** $** *******. *******, ** a ********** *******, *** ****** ******* of ~$** *******.
  • ******, ******* **** *** *** ********* *** ******** *********** ********. *****'* revenue *** ~$* *******.
  • ***, ** * ******* *** ** deconstruction, ******* ** ******** ** **** off *** ********* $*.* ******* **** and ******** ******* ********.

* ***** ** *** ***** ********* *** ***** *** **** * clear *** *** *** ******** ***, ***** ***** * ***** ****** of ******* ** **** *****.

Carrier ** ********* ** **** *******

***** *** **** ******* ** *** well ***** ** ********, *** ******** Carrier *** * ******* ** **** founded **** ***+ ***** ***, ******* ******* ************ ******** ****** *** ************ ****** ************* *******'* ********* ** * "****** that ***** ************* ******* ************."

******* ******* *** ** *** ******* HVAC ************* ****** ************ ** *** **** ** ******* **** **** *** **** ** "Carrier" ** ****, ****** *** **** the **** *** ******** ******** ******** as ** *********.

** *** ******** ******* ** *** report, ** ******* **********'* ********, *** financials ** *** ******** (********* ****** problems *** ******), *** ***** ** acquisition ****** ********, ********* *********, *** the *********** ** ******* ******.

Not * *** ****** *******

******* ****** **** ** ** * "very ******* ******* ******* *** ********* business",** ******** **** ******** ************** **** *** ******** ********:

*** **** ** *** **** *** rest ** *** *********? **'** **** that ** *** * **** ******* climate ******* *** ********* ********. *** that ** ** **** ** ** world ****** ** *** ***** ***** to ******* ******** ******* ******* *** solutions ********* ** *** *********.

******* ********* ********* **** **** **** thinking ********* ***** *** ******** ** keeping ****** ********* *** ********:

***** *** **** ******** ******* ******* opportunities ******* **** & ******** *** the **** ********. **** ** **** to *** ********* ** ** ***** revenue ********* ****** *** **** **** of * **** ******* *********? *** would **** ** ***** **** ** others *** **** ** ***** ******** that *** *** ** ******* ***** things. ****'* * ******** **** **'** asked ********* ***** *** ***** ****. We'll *** ********* ********** '**, *** we'll ******** ** ****** ****.

*** ******* ***** ********* *** ******** of **** ** ****** **** ******** ****:

** *** **** *** **** **** United ************ **** * ***** ** unleashed * *** ** ****** *** value ****** ******* **** ** ****** a ********** ****** *******. * ***** Greg *** **** *********** *** *** the ***** *****.

*** ****'* ** ********** **** ** will ******** ** **** ** * team. *** ** *** ********, **'** continue ** ******* *** ******* ** Fire & ********, **'** ******** ** invest ** **** ********* ******* **'* a ***** ********** ** **********.

*************, ** **** ****, ******* ********* to ******* **** *** **** ********* between **** *** ******** ****, ********* "some ********** *****":

*****'* **** ** ******** ******* ********* synergies ******* *** **** *** *** Fire & ******** *********. *** *** do ********* **** ********* ********. *** typically **** ********* ********-****** ****** *** building ** ***** ******. **, ** really ******* **** ** ***** *********, there's **** ********** *****.

**** ****** ******* ****** ******* *** buys *** ***** **** *** *** buys *** ***** ********, ***** **** Carrier ****** *****.

**'* * ******** **** ********** ****** be * ****-**** **** *** ********. Its ***** ******* *** ********* ****.

**'* * ******** **** ****** ** all ** *** *********, *** **** on *****, ***** *** **** **** difficult. **'** **** ****** * *** for **** ****, ********* *** ***********.

Recent *********** ******

********, *** **** *** ******** ******** has *** ********** ********, **** *** company *********** *** ** **** ******** ****:

********* ****** *** ***** ** *** expectations *** **** ******* *** ** continued **** ****** ***** *** ********* costs *** *********** *********** **********. ** a ******, **** **** ********* ****** of **.*% *** **** ******* *** short ** *** **% ********* ****** guide.

****** *** *** **** & ******** products *** ***. ****** **** ******** in ******* **** ** *** **********, including *********** **** *** ****** *********.

*** **** & ********, ** ****** low ******-***** ******* ******.

Increasing ****** ******* ******* ******

*** **** ** ****** **** *** the ******* ****** **** **** ** it **** ****** **** ******* ****** (trying ** **** ** **** *********) including ** ********* ***** ********* ********:

*** ******* ****** ** ****** ** Fire & ******** ** '** ** mostly ***** ******, **** ****** ******.

***** ** *** **** & ******** business, ** ******** ****** *** ****** have *********** **** *** **** ****** of *****, ** ********* ***** ********* depending ** *** ******* ****** **** & ******** *** *** *****.

Financials ********

**** *** ******** ********* **** ~**% of *******'* ******* *******. *** ********** below *** ********* ***** ** *** most ************** *** **** (****).

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**** *** ******** ** ****** **% based ** *** ******** **** *** company ******** ******* ** **** ** half ** *** ******* *** *** that **** *** #* ** ****** software:

IPVM Image

***** ******* **** *** ***** **** specific ******* ** **** *** ********, they ***** *** ********* ***** *********** markets:

IPVM Image

***** ***** *** ****** ******* *** to ********* **** ******** ******* ** 40% ********* *******:

IPVM Image

** **********, **** *** ****** *************, unsurprisingly, ** * ***** ****** ****:

IPVM Image

*** *** ******** ****** **** ******* for ******* ** ****, ** * years, **** **** **** ****** * million ** * ******* "********* *******".

Valuation *** ****

** ******** ********$* ******* ********* *** *** **** & ******** ********, ***** ** *** company's *** ******, $*.* ******* *******, and *** ~**% ******** ********* ******. This ***** ** * ********* ** roughly *** */* *** *.* */*.

******** ******** *** **** **** *** current ***** ** *** ****** ***** investors *** ********* *** ********* ********* to ** ***** ** ********.

****** ******** *** **** **** *** belief,**** *** *** **** *****, **** * *** ***** ***** substantially ******** ************* *** *******, ********** a ******* *******.

Potential *********

** *** *** ******: ******* ** sell-off ** * ***** *******.

* *******, ******* ** **** *** did **** *******, *** *** ****** of ******** *** **** & ******** business ** ***** **** ** ****. With *** ****, ** ** ********* large ****** ** ** * ******** traded *****-***** ********. ** *** ***** hand, *** ****-*** ******* ** ****** and ****-********* **** ** *** ****-*** goes ***** (*.*.,*** *******'* ******* *********), ** ***** ******* *****.

******* ** ******** **** ** *** more *************** ******** ********* **** ******* finds *** **** ** ******* ** pay *** ***** **** ******* ***** shareholders *********.

* *********** ******* **** *********** ** the ***** **** *** ******* ** the **** & ******** ******** ****** limits *** ****** ** ********* **** might ******* ** ***** *** ********** are ******* ********* **** ** **** significantly **** ** ****** *******.

************* **** *** *** ********* **** sense ** ** ***** ********* ******** the ****. *** ******** ** **** there ***** ** *********** ******* **** various ******** ********** *** *** ****** is **** ***** *** ***** ************ that *** ***** *** ******* ** doing **** * **** *** ******* have ** ******** ******** ** ***** areas.

******** ** *** * ***** *** though ** ***** ** ** ******, if ****** ******* **** **** **** acquiring ** **** ******** ********** ** the **** *** *****. ****, ******** has *** ****** ************** (****** $** billion *********) ** ****** *** **** of **** ****. *******, **** **** not *** *** ****** ** **** seen **** ******** ***** ** ********* focused ** ****** ************ (********, ***, Openpath) ** *******, *****-**** ***** ** mature ********* (************, *****, ********). ** contrast, ******* *&* ** ********** **** (nearly **% ** ********'* ******* ****** revenue), *** *** *********** *** ******, is *** * **** ***** *** Motorola's ********* *** ***** ************* ******* significant ********* *** ****.

* ****** ** ***** *************, **** as *****, ****** *** ***** *********** (owner ** *******) **** *** ***** to ******** **** * **** *** they ************ **** **** **** ******** about ******** ******* ** ******, ***-****** companies.

** ** ****** ****, ** ** is ** **** *****, *** ******** is *** ** ******* ** ***** suspect *** * ******* ****** ** make *** *** **** **** ****** and ******* ** **** **** ** a ****.

Structural ******

******* *&* ******* **** ******* *** formerly *** ******** *** ******** ** a ****-********** *******. *** *******, ******** Lenel **** *** *****, ** ** clear **** *** / ******* *** underinvested ** ***** ****** *** *** product *********** ** *** ******* ** delivering *****-**** **** ****. ** ******** to ***** **********, **** ** **** investors ** *** ******* ************, **** primarily ** ***-****** **** ******** ********.

* ****-*** ** **** *** *** potential ** ************* ******* *** ****-**** performance *** *********** *********** ** ***** businesses ** *** ******** *** ***** on * ****** *** ********** ***** rather **** ********** ***** **** *******.

Comments (3)
JH
John Honovich
Apr 13, 2023
IPVM

******* ***** ******** / **********, ******* ********* **** *** ******* them *** ****'* ******** ******* *** is, ******** ** *******'* *****, *** a **** ***** ********.

***** **** **'* * ******** ******** platform (**** ** **** ******* ********, etc.), ** **** ****** ** **** of **** **** *** ******** *****.

****, * ******** *** ***** ***** selling *** ********** ******, *.*., ***. While ********, * ***** **'* ********** to *******, ***** *** *********** ***** of ******* *** ******* **********, ***** by ***** *** ***********. *********, ******* everything ** * ***** ** **** likely ******* ** ******** **** *******.

UM
Undisclosed Manufacturer #1
Apr 13, 2023

* **** **** ***** **** ** acquisition ** ********* ** *** ***** be ********. **** ** ***** ***** already **** ******** ********* ******** ****** that **** *****'* ***** *********** ***. Adding ******* *** ****** ** **** mix ***** **** ******** **** *****.

PH
Paul H Aube
Apr 17, 2023
Consultant PHA

********* * ****** ** ***** ************ are ****** ***** ** *** **** technological ********* (*** ** *** **** away) *** **** ******* ***** *** after ******* ***. ** ****.