Carrier to Acquire Viessmann for 12B Euro
April 26, 2023 | By HPAC Magazine
“The acquisition of Viessmann Climate Solutions is a game-changing opportunity,” Carrier Chairman/CEO, David Gitlin.
Carrier Global Corp., parent company of HVAC/R brands including Carrier, Bryant, KeepRite, Riello and Tempstar among others, has announced the acquisition of Viessmann Climate Solutions, the largest segment of Viessmann Group, in a cash and stock transaction valued at 12 billion Euro ($18B).
“The acquisition of Viessmann Climate Solutions is a game-changing opportunity,” said Carrier Chairman/CEO David Gitlin in a company release.
“Climate change, sustainability requirements and geopolitical factors are driving an unprecedented energy transition in Europe. Viessmann Climate Solutions is uniquely positioned to capitalize on this opportunity with its premier brand, highly differentiated distribution channel and innovative product offerings,” said Gitlin, adding, “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.”
Within the announcement, the company notes that Viessmann’s 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. Viessmann’s 2023 forecasted EBITDA is approximately 0.7 billion Euro on approximately 4 billion Euro in sales.
“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,” said Max Viessmann.
Following the closing of the transaction, Viessmann Climate Solutions will continue to be led by current CEO Thomas Heim, and its headquarters will remain in Allendorf, Germany. Both parties also agreed on long-term guarantees which includes: refraining from terminations for operational reasons (3 years), site guarantees for all main manufacturing and R&D locations (5 years) as well as the headquarters in Allendorf (10 years).
Viessmann also noted in its own company news release that the family recognizes the team effort by all family members, and upon the successful closing of the new partnership: A sum of 106 million Euro, for 106 years of success, will be distributed as a one-time bonus for all Climate Solutions employees.
The Viessmann Group will continue to remain an independent family business in full ownership of the Viessmann family. It will continue its entrepreneurial activities following its purpose of co-creating living spaces for generations to come. Going forward, it will be building an ecosystem that will focus on CO2 avoidance, CO2 reduction and CO2 capturing, beyond the HVAC sector.
Carrier made the Viessmann acquisition announcement the same day it released its first quarter 2023 earnings. The company reported sales of US$5.3 billion (up 13% year-over-year), with net income of US$373 million.
In addition, Carrier announced plans to exit its Fire & Security and Commercial Refrigeration cabinet businesses.
