(Bloomberg) -- Carrier Global Corp. has agreed to sell its commercial and residential fire unit to an affiliate of private equity firm Lone Star Funds for an enterprise value of $3 billion.
The deal is the latest in a series of divestitures by Carrier under Chief Executive Officer Dave Gitlin to focus on its core heating and cooling equipment businesses. The sale of the unit, whose products include smoke and carbon monoxide detectors, is expected to close by the end of this year, the company said in a statement Thursday.
“We now have executed deals on all our divestitures, all signed within about a year of announcement,” Gitlin said in a statement. He called the pact a “defining step” in Carrier’s push to shift into fields with higher growth prospects.
Last month, the Palm Beach Gardens, Florida-based company completed the sale of its industrial fire business and in June it sold off its building security business. It expects to close the sale of its commercial refrigeration business near the end of the third quarter.
All told, the divestitures have a combined value of about $10 billion and Carrier has reduced its net debt by over $5 billion through the repayment of outstanding term loans and notes, the company said in the statement.
Carrier also has been buying to bolster its core business. In January, it closed an acquisition of Germany’s Viessmann Climate Solutions in a deal worth roughly $13 billion.
Carrier’s shares rose 3.3% as of 9:36 a.m. in New York. The stock had gained 14% this year through Wednesday’s close.
(Updates shares in seventh paragraph.)
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