Haier Smart Home Acquires Carrier’s Commercial Refrigeration Business for USD 640 million

QINGDAO, China, Dec. 14, 2023 /PRNewswire/ — Haier Smart Home entered into a stock purchase agreement with Carrier Global Corporation (NYSE: CARR) to acquire Carrier’s Commercial Refrigeration Business (“Carrier Commercial Refrigeration”) through acquiring 100% of the equity interest in Carolin Holdings B.V. Carrier, for total consideration of approximately USD 640 million (the “Transaction”), which represents 11x 2022A P/E. The Transaction marks Haier Smart Home’s expansion from its existing household refrigeration business into the commercial refrigeration business, creating additional future growth opportunities.

Carrier Commercial Refrigeration is a leading global commercial refrigeration solutions provider, with more than 4,000 employees, including over 2,000 service technicians in more than ten countries worldwide. Carrier Commercial Refrigeration boasts a large and loyal enterprise customer base with long-term partnerships spanning multiple years. Additionally, CCR has accumulated expertise in technology and commercial applications related to carbon dioxide (“CO2”) refrigeration.

“Carrier Commercial Refrigeration is a preeminent global enterprise with respected brands, leading technology, and an experienced workforce dedicated to providing best-in-class solutions to customers globally,” said Li Huagang, Chairman and CEO of Haier Smart Home. “The acquisition will help Haier Smart Home establish its commercial refrigeration platform, enabling the Company to capture additional growth opportunities by expanding its presence to food retail refrigeration and cold storage.”

“Following our decision to exit the commercial refrigeration business and a robust competitive process, we identified Haier Smart Home as the right fit to grow the business moving forward, building upon our successful 22-year refrigeration partnership with them,” said Carrier Chairman & CEO David Gitlin. “Executing this definitive agreement demonstrates continued progress in our portfolio transformation, further positioning Carrier as the global leader in intelligent climate and energy solutions. Following completion of our planned transactions, we will be a more focused, higher growth business, operating in attractive global market segments and benefiting from long-term secular tailwinds. I am deeply appreciative of our team’s work to successfully position us for our future.”

The transaction is expected to close in the second half of 2024, and is subject to regulatory approvals and customary closing conditions, and works council consultation processes.

Advisors for the Transaction

Lazard served as financial advisor to Haier. PwC served as project management, financial, tax, IT, HR, and environmental due diligence advisor. Baker & McKenzie was Haier Smart Home’s external legal counsel. Clifford Chance and King & Wood Mallesons provided regulatory legal advice.

About Haier Smart Home

Haier Smart Home was founded in 1984 as a subsidiary of Haier Group and is a leading enterprise focused on providing smart and better-lifestyle solutions, and is also the largest household appliances maker globally. Haier Smart Home is listed on three public stock exchanges – it became public on the 1) Shanghai Stock Exchange in China in 1993, 2) the Deutsche Börse Stock Exchange in 2018, and 3) the Hong Kong Stock Exchange in 2020. Haier Smart Home has more than 100,000+ employees worldwide, of which more than 1/3 are from regions outside of China.

Haier Smart Home has built a portfolio of global brands including Haier, Casarte, Leader, GE Appliances, Candy, Fisher&Paykel and AQUA. The brand portfolio provides customers with a customized smart home experience and is committed to providing customers with end-to-end and full-life-cycle services.

About Carrier

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, we’ve led in inventing new technologies and entirely new industries. Today, we continue to lead because we have a world-class, diverse workforce that puts the customer at the center of everything we do.