Carrier Global Agreed to Sell Its Commercial Refrigeration Unit to Haier

On Wednesday, Dec. 13, Carrier Global divulged that it had signed a definitive agreement with Haier to sell its global commercial refrigeration business. The company said it would sell the unit to its joint venture partner for about $775 million, including roughly $200 million of net pension liabilities.

Haier Smart Home Confirmed as Buyer

According to Reuters, the world-renowned air conditioner manufacturer expects net proceeds from the deal to go beyond $500 million, and it plans to use the funds to reduce its debts.

Haier Smart Home confirmed the news that it will acquire Carrier Global's commercial refrigeration segment. The Chinese appliance manufacturer is now looking to close the acquisition deal within the latter half of 2024.

Carrier Reveals New Focus After the Sale of Refrigeration Division

At any rate, the announcement of the deal between Carrier and Haier Smart Home comes not long after it was revealed last week that the former is planning to sell its security business for almost $5 billion, with Honeywell being the buyer.

"Following our decision to exit the commercial refrigeration business and a robust competitive process, we identified Haier as the right fit to grow the business moving forward, building upon our successful 22-year refrigeration partnership with them," David Gitlin, Carrier's chairman and chief executive officer, said in a press release. "Executing this definitive agreement demonstrates continued progress in our portfolio transformation, further positioning Carrier as the global leader in intelligent climate and energy solutions."

Gitlin added that once the transactions with Haier are completed, Carrier will focus more on the higher growth of its business. The company will also start operating in the global market segments and "benefit from long-term secular tailwinds."

Haier Smart Home's chairman and CEO, Li Huagang, also commented, "Carrier Commercial Refrigeration is a preeminent global enterprise with respected brands, leading technology, and an experienced workforce dedicated to providing best-in-class solutions to customers globally."

The Haier chief further acknowledged that acquiring Carrier's commercial refrigeration unit will "help Haier Smart Home establish its commercial refrigeration platform, enabling the Company to capture additional growth opportunities by expanding its presence to food retail refrigeration and cold storage."

Photo by: Carrier Press Release