(Reuters) – Air conditioner maker Carrier Global Corp said on Tuesday it would buy German industrial firm Viessmann Group’s unit that makes heating boilers and heat pumps in a 12 billion euros ($13.17 billion) cash-and-stock deal.
The acquisition is expected to enhance Carrier’s strategy to capitalize on the rapid energy transition in Europe and give access to several sustainable technologies and services.
The deal is also part of an overhaul at the Florida-based company, which has been working with advisors to spin off its fire and security business.
The company said it plans to exit its fire and security and commercial refrigeration business over the course of 2024.
Under the deal, Viessmann Chief Executive Max Viessmann would join Carrier’s board. The deal has been approved by the board of both companies and is expected to close by 2023 end.
The company said the deal is expected to be modestly impact its adjusted profit in 2024 and would add to earnings in 2025.
Reuters had reported the news of the deal earlier this week.
Separately, Carrier reported a 2% drop in its first-quarter profit, excluding items. Its shares were down 3.4% in trading after the closing bell.
($1 = 0.9114 euros)
(Reporting by Anandita Mehrotra and Aditya Samal in Bengaluru; Editing by Arun Koyyur)
