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Honeywell Expands Building Safety Business through $4.9 Billion Acquisition of Carrier Unit

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Last Updated on December 8, 2023 by Robert C. Hoopes

Honeywell, a prominent U.S. industrial firm, has unveiled its plans to acquire Carrier’s security unit for a whopping $4.95 billion in cash. This deal, the largest under the new leadership of CEO Vimal Kapur, is set to bolster Honeywell’s building safety business.

One of the key aspects of Carrier’s security unit that caught Honeywell’s attention is its inclusion of popular brands such as Onity, a renowned electronic lock manufacturer used by numerous major hotel chains, and Supra, a cloud-based lock maker. With these acquisitions, Honeywell seeks to expand its reach in the building safety market and reinforce its strategic objectives. The transaction is expected to be finalized before the third quarter of 2024.

The move couldn’t come at a better time for Honeywell, as its building technologies business has been grappling with sluggish revenue growth. By joining forces with Carrier’s security unit, the company aims to address this challenge head-on, leveraging the unit’s impressive portfolio and industry expertise.

On the other side of the deal, Carrier intends to employ the proceedings from the acquisition to pay down its debt. The fire and security unit, which is being sold, contributed to 17% of Carrier’s total sales last year. This strategically aligned move will help Carrier streamline its operations and focus on core areas of growth.

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Despite the slight decrease of 1.4% in Honeywell’s shares following the announcement, the overall performance of the company remains strong. Its aviation business has generated successful results, but the same cannot be said for the building safety sector. This acquisition represents a significant step forward in reigniting growth within this division.

Investors have responded positively to the news, with shares of Carrier soaring 4.3% in the wake of the announcement. This reflects their confidence in the long-term benefits of the deal and Honeywell’s ability to position itself strongly within the building safety market.

As the acquisition progresses towards completion, industry experts eagerly anticipate the transformative impact it will have on Honeywell’s overall business strategy. With the amplification of its building safety segment, Honeywell is poised to solidify its position as a leader in the industry and continue its trajectory of success.

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Dina J. Miller is an accomplished writer and editor with a passion for business and education. With over a decade of experience in the industry, she has established herself as a leading voice in the MBA community. Her work can be found in a variety of MBA magazines and college publications, where she provides insightful commentary on current trends and issues in the field. Dina's expertise in business and education stems from her extensive academic background. She holds a Master's degree in Business Administration from a top-tier business school, where she excelled in her studies and developed a deep understanding of the complexities of the business world. Her academic achievements have been recognized with numerous awards and honors, including induction into several prestigious academic societies.

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