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Business News/ News / Honeywell to Buy Carrier Unit for $5 Billion
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Honeywell to Buy Carrier Unit for $5 Billion

wsj

The security business makes products including electronic locks for big companies, hotels and hospital chains.

Honeywell embarks on a spending spree to bolster its portfolioPremium
Honeywell embarks on a spending spree to bolster its portfolio

Honeywell International has struck a roughly $5 billion deal to buy Carrier Global’s security business, according to people familiar with the matter, as the industrial giant embarks on a spending spree to bolster its portfolio.

The security business makes products including electronic locks for big companies, hotels and hospital chains. The acquisition would bulk up Honeywell’s Building Automation segment, whose customers include hospitals, airports, data centers and the like. It is part of a push by the Charlotte, N.C., company, which operates in industries ranging from aerospace to energy, to meet increasing demand for cloud-based products.

Honeywell Chief Executive Vimal Kapur said in October that the company is focused on building its business around automation, aviation and the energy transition. Kapur, a longtime Honeywell executive, took over the CEO role from Darius Adamczyk in June.

The deal for the Carrier unit feeds Honeywell’s commitment to deploy at least $25 billion over the next three years toward mergers and acquisitions, as well as dividends, capital expenditures and share buybacks.

The purchase would be relatively digestible for Honeywell, whose market capitalization stands at about $130 billion after a roughly 7% decline so far this year.

Palm Beach Gardens, Fla.-based Carrier, known for making heating and air-conditioning units for commercial and residential spaces, is one of three companies United Technologies separated into in 2020.

Carrier, which has a market cap of about $44 billion, earlier this year announced it planned to exit its Fire and Security and Commercial Refrigeration businesses as it looked to streamline its own portfolio. Carrier is still exploring alternatives for its commercial and residential fire unit.

Carrier has also said it would buy Viessmann Climate Solutions, the largest segment of Germany’s Viessmann Group, for a little more than $13 billion.

Write to Lauren Thomas at lauren.thomas@wsj.com

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