Carrier Global Corporation has agreed to acquire Viessmann Climate Solutions for $US13.17 billion (12 billion euros) with the deal set to close at the end of 2023.
Carrier said the deal will establish the manufacturer as a pure-play, global leader in intelligent climate and energy solutions.
Viessmann Climate Solutions, the largest segment of Viessmann Group, has been a privately held company for 106-years.
Viessmann Climate Solutions provides Carrier with an iconic, premium brand in the highest growth segment of the global heat pump and energy transition markets. In addition, Carrier announced plans to exit its Fire & Security and Commercial Refrigeration cabinet businesses.
Carrier chair & CEO, David Gitlin, said the acquisition is a game changing opportunity.
"Climate change, sustainability requirements and geopolitical factors are driving an unprecedented energy transition in Europe. Accelerated by government regulations and incentives, the transition creates a significant, long-term growth opportunity,” Gitlin said.
“Viessmann Climate Solutions is uniquely positioned to capitalize on this opportunity with its premier brand, highly differentiated distribution channel and innovative product offerings.”
With 70 per cent of its business consisting of heat pumps and related accessories, solar PV, batteries and services, Viessmann Climate Solutions is a critical leader in Europe's energy transition.
“We look forward to welcoming its 11,000 team members to the Carrier family and Max Viessmann, CEO of Viessmann to the Carrier Board of Directors at closing, which is expected around the end of 2023,” Gitlin said.
"The Viessmann Climate Solutions acquisition and planned exit of Fire & Security and Commercial Refrigeration will further simplify our business portfolio and accelerate our strategy to establish Carrier as the global leader in intelligent climate and energy solutions.
"Recent strategic actions, including the Toshiba Carrier Corporation acquisition and the sale of Chubb, have aligned our company with the most significant megatrends impacting the heating and cooling industry, including managing climate change and delivering on net zero emissions targets.
“While Fire & Security and Commercial Refrigeration are great businesses with incredible, customer-focused teams, the planned exits sharpen the strategic focus Carrier has gained through its 2020 spin-off from United Technologies,” he said.
“With Viessmann Climate Solutions, we are positioning ourselves to be the global climate solutions champion, poised to deliver higher growth and superior shareowner value."
CEO of Viessmann, Max Viessmann, said that following the transaction closing, the Viessmann Group will remain a significant, long-term shareowner of Carrier.
“Joining Carrier's Board of Directors will enable me to work directly with Dave, my fellow directors and the Carrier team to realize the substantial potential of the combination of two iconic and market-leading companies,” Viessmann said.
The $5 billion European heat pump segment, in which Viessmann Climate Solutions specializes, is expected to triple in size to $15 billion by 2027.
Viessmann Climate Solutions also benefits from unique customer access with a direct-to-installer model that includes more than 75,000 installers in 25 countries.
Carrier expects to exit its Fire & Security and Commercial Refrigeration businesses over the course of 2024.
The planned exits do not include UTEC, Fire & Security's controls business for residential HVAC customers or Carrier Transicold's transport refrigeration, Profroid mechanical systems and Sensitech monitoring businesses.