Nasdaq have reported that Carrier Global Corp. (CARR), a provider of healthy, safe, sustainable and intelligent building and cold chain solutions, agreed to sell its Chubb fire and security business to APi Group Corp. (APG) for an enterprise value of $3.1 billion.
Russ Becker, APi’s President and Chief Executive Officer stated:
“This is a very exciting day in the history of APi. We have spent a tremendous amount of time evaluating several transformative opportunities as well as more traditional acquisitions. With the acquisition of Chubb, we see a tremendous amount of accelerated organic growth and margin expansion opportunities across our combined platform. There is also significant opportunity to leverage Chubb’s 200+ year history of providing statutorily required and route-based services through its internationally recognized brand. We look forward to providing additional details during our conference call today at 9:00 am (Eastern Time) and we look forward to welcoming Chubb’s 13,000 employees to our family of businesses.”APi Group Corp
Chubb Fire & Security has roots dating back to 1818 with the demand for ‘security’ resulting from
the impact on society of the industrial revolution. Chubb has been operating in New Zealand since 1958 and today has 8 branches servicing all parts of both islands.
Carrier Global said the sale enables the company to focus on its core businesses and to re-allocate net proceeds consistent with its stated capital allocation priorities, including funding organic and inorganic growth, dividends, and share repurchases.
Headquartered in the United Kingdom, Chubb has approximately 13,000 employees globally and a sales and service network spanning 17 countries in Europe, Asia Pacific and Canada. The business is a globally recognized fire safety and security provider.
The proposed sale is subject to a consultation process and regulatory approvals. It is expected to close in late fourth-quarter 2021 or early first-quarter of 2022.
APi Group is a multi-billion-dollar parent company to more than 40 independently managed companies that specialize in safety solutions, specialty services, and industrial solutions in over 200 locations worldwide. APi Group combines the personal attention of small-to-medium sized construction companies with the strength of an industry leader to bring innovation to the construction industry.
Accordingly, this is seen as a positive move for Chubb, and it is expected that their brand presence will be strengthened in the market.
Day-to-day operations are not expected to be affected in any significant way.