(Reuters) -U.S. industrial firm Honeywell said on Friday it would buy air conditioner maker Carrier’s security business for $4.95 billion.
Shares of Carrier rose 4.4% to $52.9 in premarket trade.
The Florida-based company’s Access Solutions security business provides residential, commercial and industrial security systems including electronic locks and remote access management.
It intends to use estimated net proceeds of about $4 billion from the deal to pay down debt.
The all-cash deal is expected to close before the end of the third quarter of 2024 and will be cash-earnings per share accretive to Honeywell in the first full year of ownership.
The news comes after Honeywell named insider Vimal Kapur as CEO earlier this year and in October realigned its business focus on three “compelling megatrends” – automation, the future of aviation and energy transition.
(Reporting by Nathan Gomes in Bengaluru; Editing by Devika Syamnath)
