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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

By Nikki Cabus

StartUP FIU Students Develop Innovative Strategies to Tackle Healthcare Disparities for Pharmaceutical Giant GSK

Read Time 5 Minutes

StartUP FIU, the innovation hub at Florida International University, partnered with GSK, one of the world’s largest pharmaceutical companies, established a hands-on, multi-disciplinary experience that inspired students to develop new and creative solutions to dismantle health disparities in minority communities.

In addition to being part of a nation-wide effort to improve health outcomes for minority communities and making a positive impact in the medical field, students selected for the program received corporate internship credits, the experience of learning from leaders and experts in the healthcare industry, and earning $1,000 for their efforts.

Inspired by Dr. Martin Luther King, Jr.’s commitment to equity and access, the 12-week GSK Innovation Challenge had a goal of honoring the legacy of this great man by igniting in a new generation the desire to fight for justice in the healthcare sphere. Reflecting the values of Dr. King, GSK is focused on the social determinants of health and is working to ensure high-quality, inclusive healthcare services and education is accessible to all. GSK is a global biopharma company with a purpose to unite science, technology, and talent to get ahead of disease together.

This experiential, hands-on challenge leveraged the lived experiences and diverse backgrounds of 34 FIU undergraduate students, 96% of whom hail from minority communities. Students with Hispanic, African American and Asian backgrounds are often able to offer personal perspectives into health disparities. In this case, the program addressed the low rates of vaccines in marginalized communities.

“These students really rose to the challenge with compelling and creative solutions and all the program mentors deserve a big thank you for their guidance” said Maya Martinez-Davis, GSK US President. “Some of these students learned about health disparities for the first time while others brought their shared experiences. Our goal is to close the gap in underserved communities by developing the next generation of innovators. The partnership between GSK and StartUP FIU is just one of many steps towards achieving that.”

FIU’s unique status as the country’s largest Hispanic Serving Institution (HSI) with more than 32,000 students who identify as Hispanic or Latino, makes it an ideal place for global companies like GSK to get ‘on the ground’ perspectives from the communities they want to serve. Educating students across campus, many from different parts of the world, StartUP FIU offers a vibrant array of diverse outlooks, life experiences and cultural values that help organizations better understand their customer base and plan for a dynamic future.

Throughout the GSK Innovation Challenge, students from a variety of majors were guided by public health and entrepreneurship mentors to delve deeper into how minority communities make health care decisions, what sources they trust, who they listen to for medical information and how their lifestyles
either facilitate or impede positive healthcare decisions.

“This unique Challenge offered our students the opportunity to creatively explore a serious population health issue and brainstorm innovative ways to drive communities towards making healthy decisions,” said Emily Gresham, Assistant Vice President for Research, Innovation and Economic Development and Co-Founder of StartUP FIU.

At the end of the 12-week GSK Innovation Challenge, seven student groups pitched their solutions for increasing vaccination rates to GSK leadership. The Pitch Day event, held Friday, April 14, showcased the creativity and novel thinking that can occur when students are empowered with the tools of innovation and supported by expert mentors in the industry.

Members of GSK leadership who came to StartUP FIU to judge the student pitches were impressed by the creativity, thoughtfulness and hard work shown by FIU students.

 

PITCH DAY WINNERS

1ST PLACE

Winning Idea:

Collaborate with companies that have large Hispanic workforces to include at-work vaccination events and other healthcare programs to streamline the patient experience

Team Members:

Vinai Sewaliah, Akerke Parmbek, Christian Castellanos & MaAngelica Subido

 

 

2ND PLACE

Winning Idea:

Targeted advertising campaign focused on influencing mothers, who usually make healthcare decisions for the entire family.

Team Members:

Daniella Diaz, Emily Gresham, Lina Henriquez & Yasha Hasan, Chloe Posthuma-Coelho

 

 

3RD PLACE (TIE)

Winning Idea:

Targeted advertising campaign focused on influencing mothers, who usually make healthcare decisions for the entire family.

Team Members:

Devin Shanahan, Owethu Phekani, Itzel Castellon, Yomaira Ayala Daboin

 

 

3RD PLACE (TIE)

Winning Idea:

Work with faith-based organizations to educate congregations about shingles and prevention.

Team Members:

Aditi Mishra, Katherine Mejia

 

 

 

The GSK Innovation Challenge is just one example of how StartUP FIU uses hands-on, experiential learning opportunities to help students implement the core concepts of innovation and entrepreneurship towards solving real-world challenges.

“By adapting what they’ve learned in the classroom to help companies solve some of their toughest problems, students gain confidence in their skillset and learn how to think critically,” said Robert H. Hacker, Director and Co-Founder of StartUP FIU and one of the Challenge’s entrepreneurial mentors.

StartUP FIU is a university-wide innovation hub that fosters and develops entrepreneurship and innovation to help our students, researchers, and community connect, contribute to, and thrive in today’s fast-changing world. We create and run programs based on two foundational beliefs: that the skills and principles of entrepreneurship are essential to navigate and harness the opportunities of our disruptive age, and that universities can play a unique role in unlocking opportunity and unleashing potential to shape a better, more inclusive, and more innovative future.

By Adam Elitzur

#MiamiTech HAPPY HOUR | Coral Gables (sponsored by TriNet & StevenDouglas)

🍺 SPONSORED BY: TriNetStevenDouglas
You’re invited to join Tech Hub for our #SoFloTechHappyHour!
We host them every month in different cities across the region. From Miami to Palm Beach, we bring together South Florida’s tech professionals to enjoy a night of networking and connections with a goal of bettering our businesses, work environments, and our overall community.
We’re heading back to Miami!
Come out and enjoy good food and drinks and even better company.
TOGETHER, we are #BuildingSoFlo!

🍺 EVENT DETAILS:
– WHEN: Thursday, May 18th from 5:00 – 8:00 pm
– WHERE: Mamey @ Thesis Hotel Miami
– WHO: South Florida tech, startup and innovation community.
– WHAT: Rooftop, live music, Caribbean cuisine and great drinks!
– WHY: network, connect, and have fun!
👏 FREE drink ticket for the first 30 guests – compliments of TriNet ! 👏
💰🍺 WE ARE STILL LOOKING FOR A DRINK SPONSOR! 💰🍺
SEE “TICKETS” OR EMAIL TEAM@TECHHUBSOUTHFLORIDA.ORG

ABOUT SPONSORS🍺
TriNet Group, Inc. is an American cloud-based professional employer organization for small and medium-sized businesses. TriNet administers payroll and health benefits and advises clients on employment law compliance and risk reduction, acting in some cases as an outsourced human resources department.
StevenDouglas, one of the nation’s leading Search and Interim Resource firms, is a recognized leader in identifying and providing access to top talent and executives for companies since 1984. The firm is nationally known for search expertise in Finance & Accounting, Human Resource, Information Technology, Operations, Sales & Marketing, Legal & Compliance; As well as providing interim resources and staffing for Information Technology, Finance & Accounting, and Human Resources.
ABOUT VENUE🌿
Inspired by Patel’s travels throughout Asia, Polynesia and the Caribbean, Mamey derives its name from the unique fruit while showcasing the exotic flavors and spices commonly found in tropical cuisine. Mamey’s relaxed atmosphere offers a fun, convivial destination for hotel guests and locals alike and is an idyllic escape where guests can indulge in vibrant cuisine and refreshing cocktails. Check out photos here.
PARKING 🚗
Self parking available in hotel garage at $3/hour and also have Valet available.
INTERESTED IN SPONSORING A FUTURE EVENT?
nikki@techhubsouthflorida.org

By Nikki Cabus

South Florida-based PeakActivity acquires eCommerce software agency Lexima

Read Time 3 Minutes

PeakActivity, an eCommerce and technology services company based in Boynton Beach, recently acquired Lexima, an eCommerce software agency specializing in eCommerce platform technology implementations. PeakActivity’s  already robust technology and eCommerce capabilities will be further deepen their expertise with the acquisition of Lexima.

In 2019, Lexima was founded in Palm Beach County in 2019 just prior to the covid-19 pandemic by Lancey Lexima, a Graphic Designer turned Software Engineer who loved developing apps with amazing user experiences. The company grew quickly. By 2022, the company had a remote team with team members all across North America – from Canada to Tennessee to Florida. Lancey opened their headquarters right in the heart of downtown West Palm Beach.

Lancey  founded Lexima with an intent to build an agency that partners with brands to provide a quality development service. Lexima quickly garnered a reputation for its expertise in the headless eCommerce market, beginning with the Shopify platform and growing to include additional platform technologies, including BigCommerce, Vue.js, and Next.js. Having worked in software development for companies such as MDLIVE, 4Ocean, and MCNA Dental, Lancey began his journey with great experience and needed connections in the industry. Thanks to Lexima’s forethought and early success, the was able to attract the attention of such clients as 4ocean, The Genie Company, and Charleston Wine + Food.

“Joining forces with PeakActivity made perfect sense,” says Lexima Founder & CEO, Lancey Lexima. “We built the business from the ground up to engage with clients as a partner on their eCommerce journey. Through partnering with PeakActivity, we are able to deliver eCommerce excellence at scale.”

The coming together of PeakActivity and Lexima represents an alignment of values, as both organizations focus on ROI-driven user experiences & solutions focusing on four main areas of expertise: Modernization, Optimization, Innovation and Engineering.

More and more businesses seek eCommerce technologies that deliver fast and rich experiences for their customers, such as Shopify and BigCommerce. Lexima provides PeakActivity with another conduit to success thanks to its expertise on platforms that everyone knows of, but few are experts at. Adding Lexima’s talent, leadership, and experience to existing and future clients will allow them to drive better business outcomes and elevate business growth for today and tomorrow.

Since the acquisition, Lancey has stepped into the VP of Technology Solutions for PeakActivity. His role will be focused on leading the company’s eCommerce technology implementations. Lancey will be using tools such as Shopify and Big Commerce to support PeakActivity’s clients through their implementation process and ultimately overall growth.

“Leadership, expertise, and excellence drive everything we do here at PeakActivity,” says PeakActivity CEO, Manish B. Hirapara.

“Having Lexima as part of our team further strengthens our depth of expertise. With Lexima’s eCommerce experts onboard, PeakActivity is now even better positioned to provide value quickly, effectively, and at scale.”

Founded in Boynton Beach in 2012, PeakActivity has already expanded into 7 different countries across 4 continents and employing more than 250 people. Their diverse team believes that their collective experience binds them together, unifying their purpose and infusing and influencing everything—from what we create and develop, to what we believe and value.

PeackActivity recently celebrated their 10 year anniversary in 2022. The company’s background in corporate retail, combined it with their entrepreneurial spirit, enabled them to create a company that leverages the latest technologies to quickly anticipate clients’ needs, solve their business challenges, and enable their progress on their digital journey. Those same ingredients attracted companies such as CITY Furniture, one of America’s Top 20 furniture retailers based in Broward county who announced they took an equity stake in PeakActivity just last year. This news, along with the Lexima acquisition put PeakActivity

PeakActivity provides expert leadership, skilled resources, and growth programs to elevate eCommerce and technology outcomes. The company’s talented strategists, designers and engineers have launched some of the largest eCommerce initiatives using the latest in headless technology, site optimization, and machine learning-enabled solutions.

If you’re looking to elevate your eCommerce experience, we’re the proven partner to climb with. For more information, visit www.PeakActivity.com or contact Hello@PeakActivity.com.

Carrier Announces portfolio transformation including acquisition of Viessmann Climate Solutions
StartUP FIU Students Develop Innovative Strategies to Tackle Healthcare Disparities for Pharmaceutical Giant GSK
Lunch & Learn: Get Started with Generative AI Apps in Azure OpenAI
#MiamiTech HAPPY HOUR | Coral Gables (sponsored by TriNet & StevenDouglas)
South Florida-based PeakActivity acquires eCommerce software agency Lexima