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19
Jan, 2024

By Nikki Cabus

Carrier Announces Agreement to Sell Global Access Solutions Business to Honeywell for $5 Billion

Read Time 2 Minutes

Carrier Global Corporation (NYSE: CARR) entered into a definitive agreement to sell its security business, Global Access Solutions, which includes the industry-leading brands of LenelS2, Supra and Onity, to Honeywell (NASDAQ: HON) for an enterprise value of $4.95 billion, which represents approximately 17x 2023 expected EBITDA.

Carrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating solutions that matter for people and our planet for generations to come. From the beginning, the have led in inventing new technologies and entirely new industries. Today, Carrier continues to lead a world-class, diverse workforce.

With approximately 1,200 employees operating in 33 countries, Carrier’s Global Access Solutions business is an innovative global leader in advanced access and security solutions, electronic locking systems, and contactless mobile key solutions. This pending sale will allow the business to build on the strength of its leading brands, innovative solutions, strong partner relationships and high growth potential.

“Global Access Solutions is a great business with dedicated, customer-focused teams, and we look forward to watching its continued growth under the ownership of Honeywell,” said Carrier Chairman & CEO David Gitlin. “The transaction, together with the planned exits of our Industrial Fire, Residential and Commercial Fire, and Commercial Refrigeration cabinet businesses, will accelerate our growth strategy and focus, positioning Carrier to deliver higher growth and superior shareholder value and further reinforcing our track record of performing while transforming.”

Carrier expects net proceeds from the transaction to be approximately $4 billion and intends to use the proceeds to pay down debt. The company anticipates resuming share repurchases as soon as its net leverage returns to approximately 2x EBITDA. Carrier expects to classify the Global Access Solutions business as “held for sale” on the balance sheet, but the results will remain in continuing operations until the sale closes.

The proposed sale is subject to regulatory approvals and customary closing conditions. It is expected to close before the end of Q3 2024.

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are serving as financial advisor to Carrier. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP are providing external legal counsel.

The sale agreement is a successful first step in Carrier’s portfolio transformation.

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19
Nov, 2023

By Nikki Cabus

Mark Cuban & Anthropocene Ventures Back Climate-Tech Startup, Kind Designs

Read Time 4 Minutes

Renowned entrepreneur and investor Mark Cuban, alongside early stage climate tech VC firm Anthropocene Ventures, has joined Kind Designs’ seed round.

The investment marks a significant milestone for the female-founded climate and construction tech startup, which has experienced exponential growth since its launch in June 2023. The new capital enables Kind Designs to triple production capacity and expand its team to meet explosive demand for its Living Seawalls™.

Major coastal cities in the United States, including Miami, New York City, and San Francisco, are at imminent risk from rising sea-levels with local and federal government agencies expecting to spend nearly $400B in seawall construction efforts.

According to FloodList.com, the study, titled High Tide Tax: The Price to Protect Coastal Communities from Rising Seas, reveals that “Florida will be by far the most heavily impacted state in such events, with projected costs of over $70 billion across the state, with 23 counties facing at least $1 billion in seawall expenses alone.”

As a result, the United States could be on track to destroy over 50,000 miles of marine habitat by 2040.

Kind Designs addresses this concern.  The company is a climate-tech startup addressing rising sea-levels by revolutionizing the outdated and traditionally toxic seawall construction industry. Through its use of sustainable materials, and patent-pending 3D printing technology, Kind Designs is producing the world’s first 3D-printed Living Seawalls™️. The Living Seawalls protect coastal communities from floods and storm surges, while creating marine habitats, sequestering carbon and collecting essential water quality data.

Unlike traditional seawalls, which are typically flat, Living Seawalls incorporate biomimicry design principles and function as artificial reefs. The Living Seawalls also sequester carbon and collect essential water data. Kind’s innovative approach to seawall construction cuts production time by 95% and has zero green premium, making it both a sustainable and economical solution to at-risk communities.

“The investment decision was swift and resolute,” comments Anthropocene Ventures’ Managing Partner, Matthew McGraw.

Anthropocene Ventures is a global, early-stage VC firm investing in founders that leverage exponential technologies & hard science to make humanity more resilient. Kind Designs was the perfect for for the VC firm.

“Kind Designs surpasses our criteria with its immediate real-world application, clear business model, path to revenue, and the merging of nature’s smarts through biomimicry with 3D printing technology. Yet, what truly solidified our commitment is the performance of the founder, Anya. In a brief span, she has demonstrated exceptional execution.”

Earlier this summer, The Florida Venture Forum and co-host, Space Florida, hosted the 2023 Aerospace + EmergingTech Forum awarding over $200,000 in cash and VC investment. Kind Designs won first place taking home $40,000. In addition to the cash prizes awarded, DeepWork Capital, an early-stage venture capital firm based in Orlando, announced they will invest $100,000 in Kind Designs.

Soon after, GOVO Venture Partners, along with M4 Investing and the Florida Opportunity Fund, announced the decision to co-lead the $5M seed investment round in Miami-based Kind Designs.

In under five months, Kind Designs launched its warehouse, became fully operational and achieved revenue by starting to deliver the first Living Seawall panels in November 2023. The company plans to triple its production capacity by February 2024, with its recent purchase of two additional printing robots, showcasing the widespread demand for its pioneering products.

This month, Kind Designs also reached a workforce milestone, hiring its tenth full-time employee, a testament to its commitment to creating meaningful job opportunities in tech and fostering local talent in Miami. Other hires joining Kind’s founder and CEO, Anya Freeman, include Leandro Fernandez as Lead Structural Engineer and Jeremy Morris as Chief Operating Officer. Morris previously held roles at The Boring Company and Icon.

“Having investors with a global reach, like Mark Cuban and Anthro Ventures on our team is a huge vote of confidence in our mission to regenerate marine ecosystems and protect coastal communities,” shared Anya Freeman, Kind Designs’ Founder and CEO.

“With their strategic backing, we are positioned to propel Kind Designs into a massive global business, while simultaneously making an immense environmental impact. Together, we’re putting economical and environmentally beneficial coastal resilience on the map.”

Looking ahead, Kind Designs plans to further disrupt the coastal construction industry by working with government agencies to offer Living Seawall tax incentives on the county, state and federal levels. This program will be similar to incentives already in place such as solar energy and EV tax credits. Kind Designs’ Living Seawalls check several boxes by merging the structural integrity of traditional seawalls with a sustainable design that nurtures marine life and is more cost effective for coastal communities.

As Kind Designs continues to grow and innovate, this strategic investment will play a pivotal role in advancing its mission to protect coastal communities and marine life globally. Mark Cuban and Anthropocene Ventures join an impressive list of supporters within Kind Design’s $5M seed round.

To learn more about Kind Designs, visit https://www.kinddesigns.com/

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06
Sep, 2023

By Nikki Cabus

GOVO Venture Partners Co-Leads $5M Seed Round in Climate-Tech Startup Kind Designs

Read Time 3 Minutes

GOVO Venture Partners, along with M4 Investing and the Florida Opportunity Fund, is co-leading a $5M seed investment round in Miami-based Kind Designs.

This is the third portfolio company investment GOVO has made since announcing the launch of its venture fund, GOVO Fund I, in January.

It’s estimated that by the year 2100, Miami will be completely submerged by water by 6 – 10 feet “resulting in mass migration,$217 Billion in lost homes and Miami being submerged,” according to the Kind Designs. Empowering nature with technology, Kind Designs is a climate-tech startup that’s addressing rising sea-levels by revolutionizing the outdated and traditionally toxic seawall construction industry.

Through its use of innovative,  patent-pending 3D printing technology, and eco-friendly materials, Kind Designs is producing the world’s first 3D-printed Living Seawalls™️. The Living Seawalls™️ mimic coral reefs and mangroves which protect coastal communities from floods and storm surges, while creating marine habitats that host biodiversity and improve the quality of the water, The Living Seawalls sequester carbon and collect essential water quality data through embedded sensors.

Anya Freeman, Kind Design’s founder and CEO shared, ”we are thrilled to have a Florida-based firm with deep roots in the community and government expertise lead our round, enabling us to protect all coastal cities with Kind’s Living Seawalls and grow far beyond our home state of Florida.”

In a recent social media post, Anya also shared this sentiment, “Your team of investors knows how to get stuff done. It’s GO TIME in Miami!!”

Rob Panepinto, GOVO’s managing general partner, said of the investment, “In response to sea level rise, government agencies throughout the world will seek to adopt policy and guidance for ecologically responsible sea walls. By applying its proprietary and innovative technology, Kind Designs is setting the standard and solving a global problem. We look forward to collaborating with our co-investors and the Kind Designs team as they work to become the market leader in the space.”

 

GOVO Venture Partners is a Winter Park, Florida based company. GOVO Fund I is a venture fund that invests, seed round through series A, in early stage companies for which doing business with government or navigating government regulations is an important success factor.

4 Investing is a Florida based family office that owns and operates a diverse portfolio of companies. The firm also invests in real estate, private equity funds, and direct venture capital.

Earlier this summer, The Florida Venture Forum and co-host, Space Florida, hosted the 2023 Aerospace + EmergingTech Forum awarding over $200,000 in cash and VC investment and Kind Designs took home $40,000. In addition to the cash prizes awarded, DeepWork Capital, an early-stage venture capital firm based in Orlando, is announced they will also invest in Kind Designs.

Read more here.

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22
Aug, 2023

By Adam Elitzur

Carrier strengthens sustainability commitments in 2023 ESG report

Read Time 3 Minutes

Carrier Global Corporation, a leading provider of heating, air conditioning and refrigeration solutions, headquartered in Palm Beach Gardens, Florida, recently released its 2023 Environmental, Social and Governance (ESG) Report detailing the company’s sustainability strategy and latest initiatives. 

The report outlines Carrier’s commitment to setting near and long-term emission reduction targets, including a goal of achieving net-zero greenhouse gas (GHG) emissions across its value chain by 2050. Since 2020, Carrier’s efficient products have enabled customers to avoid over 212 million metric tons of GHG emissions. The company is also targeting a reduction of its customers’ carbon footprint by more than 1 gigaton and carbon-neutral operations by 2030.

In the report, David Gitlin, Chairman & Chief Executive Officer, stated “Our planet is at a critical juncture. Climate change is causing irreparable damage to the environment, and the need to transition to renewable energy has never been greater. At Carrier, the purposeful transformation of our portfolio will create a true global climate champion that leverages innovative technology to make a meaningful impact on the world for generations to come.”

“I am proud of the progress we are making. Looking ahead, we strive to be a catalyst for positive and sustainable change as we innovate, empower our people and operate with integrity. As a world leader in intelligent climate and energy solutions, Carrier is proud to have a deeply positive impact on people and our planet.”

On environmental metrics, Carrier reduced its energy consumption by 25% and water withdrawal by 11% compared to 2021 levels. The company purchased 134,000 MWh of renewable energy credits for its North American electricity use and implemented energy efficiency projects at its facilities worldwide. One such project, led by NORESCO, a part of Carrier, is in use in Fullerton, California, reducing the city’s carbon footprint and enabling critical infrastructure upgrades. To date, NORESCO has guaranteed more than $5 billion in energy and operating cost savings at more than 10,000 facilities while reducing customer carbon dioxide emissions by more than 25 million metric tons – the equivalent of planting 1.4 million acres of forest.

Additionally, Carrier is driving progress on social initiatives like inclusion, diversity and community engagement. In 2022, the company increased its spending with diverse suppliers to $312 million, expanded Employee Resource Groups globally and continued partnerships with historically Black colleges and universities. Carrier contributed over $9.7 million to community organizations worldwide. 

Looking ahead, Carrier plans to continue implementing emissions reduction initiatives across its operations, including more on-site renewable energy projects, fleet electrification efforts, and refrigerant emission reduction programs. As Carrier evolves its portfolio towards climate-friendly solutions, its 2023 ESG Report highlights the importance of sustainability and social responsibility to the company’s overall vision and growth strategy. Carrier aims to lead its industry’s transition to a net-zero future.

View Carrier’s full 2023 ESG Report here. 

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31
May, 2023

By Nikki Cabus

Carrier Announces portfolio transformation including acquisition of Viessmann Climate Solutions

Read Time 5 Minutes

Carrier Global Corporation (NYSE: CARR) announced strategic actions that will transform the Company’s business portfolio and establish Carrier as a pure-play, global leader in intelligent climate and energy solutions.

Carrier will acquire Viessmann Climate Solutions, the largest segment of Viessmann Group, in a cash and stock transaction valued at €12 billion, subject to working capital and other adjustments. The value represents approximately 13X synergized projected 2023 EBITDA. A privately held company with a 106-year legacy of innovation, 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.

“The acquisition of Viessmann Climate Solutions is a game-changing opportunity,” said Carrier Chairman & CEO David Gitlin.

“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. Viessmann Climate Solutions is uniquely positioned to capitalize on this opportunity with its premier brand, highly differentiated distribution channel and innovative product offerings.”

Gitlin continued, “With 70% 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.”

“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,” continued Gitlin. “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. With Viessmann Climate Solutions, we are positioning ourselves to be the global climate solutions champion, poised to deliver higher growth and superior shareowner value.”

Max Viessmann, CEO of Viessmann, said, “Our purpose is to create living spaces for generations to come. Carrier’s global reach, broad product portfolio, financial strength and shared commitment to sustainability will enable our Climate Solutions business to fully capitalize on our innovative, integrated solution offering and maximize our impact on Europe’s independent energy transition.”

“Following the closing of the transaction, the Viessmann Group will remain committed as a significant, long-term shareowner of Carrier, reflecting our family’s high confidence in the superior value to be created by this combination. 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.”

 

Strategic Benefits

  • Positions Carrier to lead in the rapid climate and energy transition in Europe, which is driving sustainable market growth. Geopolitical dynamics and the push for energy independence are driving European governments to promote and prioritize renewable and electric solutions for heating and cooling, which comprise approximately half of Europe’s residential energy requirements. European governments are actively promoting heat pumps and renewable solutions to address these challenges and have implemented a number of related regulations and incentive programs that are expected to result in a significant growth opportunity for key climate solutions. The $5 billion European heat pump segment, in which Viessmann Climate Solutions specializes, is expected to triple in size to $15 billion by 2027.
  • Adds the premier asset in the European climate transition market to Carrier’s portfolio with a proven track record and confidence of high, sustained growth. As the premier European climate solutions manufacturer, Viessmann’s iconic global brand commands premium pricing. 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. These differentiators, combined with its innovative product offerings, have resulted in a superior growth track record and profile. Sales and EBITDA* have grown over 15% on a compounded annual growth rate basis since 2020, with double-digit growth expected to continue through 2030. 2023 forecasted EBITDA* is approximately €0.7 billion on approximately €4 billion of sales.
  • Provides new capabilities that expand Carrier’s comprehensive renewable offerings and strengthen Carrier’s differentiated, digitally enabled lifecycle solutions. In addition to proprietary heat pump technology, Viessmann Climate Solutions offers renewable energy capabilities and home battery storage, as well as smart home system controls and applications that can all be integrated to drive energy efficiency, reliability and convenience. Viessmann Climate Solutions also has extensive digital offerings that expand Carrier’s subscription and aftermarket offerings. The combination creates the industry’s most comprehensive and differentiated suite of sustainable technologies and services, which Carrier plans to scale globally.
  • Transforms Carrier into a simpler, pure-play global leader in intelligent climate and energy solutions. The Viessmann Climate Solutions acquisition accelerates Carrier’s transformation into a global leader of intelligent climate and energy transition solutions. Viessmann Climate Solutions’ leadership position in Europe coupled with Toshiba and Giwee’s leadership positions in Asia and Carrier’s in the Americas provides the company with established leadership positions in all attractive segments in all major geographies. The planned exits from the Fire & Security and Commercial Refrigeration businesses will reduce operational complexity and sharpen focus. The outcome will be a Carrier with market-leading positions globally with a higher growth profile.

Viessmann Climate Solutions Transaction Details and Financial Benefits

Under the terms of the agreement, subject to working capital and other adjustments, Carrier will acquire Viessmann Climate Solutions for €12 billion, of which 80% will be in cash and 20% in Carrier common stock delivered to Viessmann Family Holdings.

Reflecting their confidence in Carrier’s growth and value creation, the Viessmann family has agreed to certain long-term lock-up provisions with respect to its equity ownership of Carrier common stock. Max Viessmann will join Carrier’s Board of Directors.

Carrier expects to fund the cash portion of the consideration through a combination of cash on hand and newly committed financing.

Carrier expects to maintain its investment grade credit rating at the close of the Viessmann Climate Solutions acquisition and return to its pre-transaction leverage profile within approximately two years. It also expects to resume share repurchases upon reaching its current leverage. The Company remains committed to a growing and sustainable dividend.

Financial benefits of the acquisition include:

  • Enhanced top-line and EBITDA* growth. The acquisition significantly enhances Carrier’s growth profile given Viessmann Climate Solutions’ expected continued double-digit sales growth. As a result, Carrier expects this acquisition to add more than 100 basis points to the Company’s revenue growth profile.
  • Acquisition accretive to adjusted EPS* by year two. The acquisition is expected to be modestly dilutive in 2024 to adjusted EPS*, accretive in 2025 and increasingly accretive thereafter. Free cash flow* yield is expected to be high-single-digits in year five.
  • Increases aftermarket and recurring revenue growth profile. Viessmann Climate Solutions has a large installed base serviced by more than 1,300 service and support personnel, which is projected to drive double-digit aftermarket growth. In addition to over 90,000 maintenance contracts, including subscription models, Viessmann Climate Solutions’ ViCare digital platform has over 500,000 connected devices that allow customers to use its products and services easily and effectively.
  • Meaningful synergies. Carrier anticipates approximately €200 million of run-rate cost synergies primarily from procurement and insourcing. The vast majority of the cost synergies will be realized by year three. Revenue synergies from cross-selling opportunities are expected to provide further upside.
  • Reduced complexity. Following the acquisition and business exits, Carrier will benefit from a simplified structure with a smaller footprint, fewer ERP systems, fewer legal entities, and fewer, yet more scalable, global businesses.

Listen to social media announcement here. 

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Carrier Announces Agreement to Sell Global Access Solutions Business to Honeywell for $5 Billion
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Carrier strengthens sustainability commitments in 2023 ESG report
Carrier Announces portfolio transformation including acquisition of Viessmann Climate Solutions