International. Carrier Global Corporation announced the signing of a binding agreement to acquire Toshiba Corporation's ownership interest in Toshiba Carrier Corporation (TCC), a joint venture with Carrier of VRF and light commercial systems.
The planned acquisition will strengthen Carrier's position in one of the fastest growing HVAC segments, in addition to scaling its global VRF product platform with technology and adding a recognized brand to its portfolio.
Established in 1999, TCC designs and manufactures flexible, energy-efficient, high-performance light commercial HVAC and VRF systems using its own proprietary inverter technology, as well as commercial products, compressors and heat pumps.
The acquisition of Carrier will include all of TCC's advanced research and development centers and global manufacturing operations, a strong product portfolio and long-term use of Toshiba's iconic and deeply respected brand.
"Carrier sees significant growth potential in the global VRF, light commercial and heat pump segments and is excited about the opportunity to expand our business through this strategic acquisition. TCC's proven R&D expertise, strong global brand and talented employees will be tremendous additions to Carrier's multinational. "Brand channel strategy," said Dave Gitlin, President and CEO of Carrier. "We look forward to delivering complementary, sustainable and high-performance solutions to our customers that help them achieve their environmental goals."
The global VRF and Light Commercial Equipment market is the fastest growing HVAC equipment segment. At closing, the acquisition will position Carrier in VRF, rather than doubling its sales in the market segment.
"We are pleased that TCC employees continue the growth and innovation journey of Toshiba's HVAC business as part of Carrier, benefiting from its unparalleled global reach, strong dealer network and shared history of innovation," said Satoshi Tsunakawa, President and Chief Executive Officer of Toshiba. "This is a value enhancement opportunity for investors, customers and employees."
Today's announcement builds on Carrier's recent acquisition of Guangdong Giwee Group, a China-based manufacturer of HVAC products, which offers a portfolio of high-quality products including VRF and light commercial air conditioners. Combined with Carrier's existing partnerships, the acquisition strengthens Carrier's portfolio of innovative and environmentally responsible solutions with a wider range of highly efficient all-electric products, positioning Carrier to lead the world's sustainable heating and cooling transformation.
The acquisitions also demonstrate the company's commitment to investing in growth, while delivering on Carrier's commitment to increase product extensions and expand geographic coverage. In addition, the acquisition is also another step in Carrier's ongoing efforts to simplify its HVAC joint venture structure.
The acquisition is expected to close by the end of the third quarter, subject to customary closing conditions, including regulatory approvals. At closing, Toshiba will retain a 5% stake in TCC and Carrier will consolidate more than $2 billion in unconsolidated revenue.
