Carrier Global Corp. is nearing a deal to acquire most of German company Viessmann’s business for more than $10 billion including debt to bolster its heating and cooling operations, according to people familiar with the matter.
(Bloomberg) — Carrier Global Corp. is nearing a deal to acquire most of German company Viessmann’s business for more than $10 billion including debt to bolster its heating and cooling operations, according to people familiar with the matter.
The US firm may announce this week the acquisition of Viessmann’s climate solutions unit, which accounts for 85% of revenue, said the people, who asked to not be identified because the matter isn’t public. No final decision has been made and discussions could still be delayed or fall through.
Carrier’s shares fell 7.7% at 2:28 p.m. in New York, after the Wall Street Journal first reported that the maker of air conditioners was nearing a deal for Viessmann. The deal would be part of a broader transformation at Carrier, which may sell or spin off its Fire & Security operations, according to the report.
A representative for Viessmann declined to comment. A representative for Carrier didn’t immediately respond to requests for comment.
Viessmann, founded more than a century ago by former factory worker Johann Viessmann, makes heat pumps, boilers and heating systems. It’s now run by the fourth generation of the Viessmann family, according to its website. Outside of its core climate solutions business, which provides heating, cooling, ventilation, energy generation and energy storage products, the firm also has a small refrigeration business.
Any takeover would bring a welcome boost to German dealmaking activity. The value of mergers and acquisitions in the country is down 55% this year to $9.1 billion, according to data compiled by Bloomberg.
Carrier is forging its own path as a standalone company after separating from United Technologies Corp. in 2020. United Technologies, which also split with the Otis elevator business, merged with Raytheon and was renamed Raytheon Technologies Corp.
–With assistance from Ben Scent, Ryan Beene and Richard Clough.
(Updates with information from people from first paragraph)
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