Dec 8, 2023 - Business

Honeywell buying Carrier security unit for $5 billion

Dan Primack

Illustration of a shopping cart with a giant padlock inside — Illustration: Sarah Grillo/Axios

Carrier on Friday said that it's agreed to sell its building security business to Honeywell for $4.95 billion in cash.

Why it matters: This affirms that both Carrier and Honeywell, which have a combined $175 billion market cap, are moving forward with strategic transformation plans announced earlier this year.

For Florida-based Carrier, that means an exclusive focus on climate and smart energy products. It continues to seek buyers for its commercial and residential fire unit.
For Charlotte-based Honeywell, it's a new realignment that includes automation as one of its three pillars.

Details: The purchase price represents around a 17x multiple on expected 2023 EBITDA for the acquired business, which includes automated security solutions for hospitals, hotels, and real estate lock boxes.

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Honeywell buying Carrier security unit for $5 billion

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