Carrier Global, a global air conditioner manufacturer, has acquired a division of the Viessmann Group, a German industrial company that makes heating boilers and heat pumps, in a €12 billion ($13.17 billion) cash-and-stock deal.
The acquisition is expected to strengthen the carrier’s strategy to capitalize on Europe’s rapid energy transition and provide access to a number of sustainable technologies and services.
The deal is also part of a closer look at the Florida-based carrier, which has been working with advisors to spin off its fire and security business. The company said it plans to close its firefighting, security and commercial refrigeration operations during 2024.
Under the agreement, Max Viessmann, CEO of Viessmann, will join Carrier’s board of directors. The transaction has been approved by the boards of both companies and is expected to close by the end of 2023.
Carrier said the transaction would have a slight impact on adjusted earnings in 2024 and add to earnings in 2025.
Reuters reported on the deal earlier this week.
Separately, Carrier (NYSE:CARR) reported a 2% drop in first quarter earnings excluding items. Shares fell 1.47% in after-hours trading on Tuesday.