10:18 AM EST, 03/05/2024 (MT Newswires) -- Carrier Global ( CARR ) said Tuesday that it agreed to sell its industrial fire business to private equity firm Sentinel Capital Partners in a deal worth roughly $1.43 billion, as the heating and air conditioning equipment maker continues to reshape its portfolio.

The business provides fire detection and suppression solutions and includes brands such as Det-Tronics, Marioff, Autronica and Fireye. The unit has about 1,400 employees and operates in 20 countries, according to Carrier.

The deal, which requires approval from regulators, is expected to complete in the third quarter. Carrier Global ( CARR ) anticipates more than $1.1 billion in net proceeds from the transaction and aims to use that amount to pay down debt.

"This transaction marks another milestone in our transformation as we become a more focused, higher growth company, and furthers our vision to become the global leader in intelligent climate and energy solutions," Carrier Chief Executive David Gitlin said in a statement.

The proposed sale comes after the company completed its acquisition of Viessmann Climate Solutions in the beginning of the year. In December, Carrier struck a $4.95 billion deal to sell its global access solutions security business to industrial conglomerate Honeywell International (HON). Later that month, Carrier agreed to divest its global commercial refrigeration business to joint venture partner Haier.

Carrier anticipates Viessmann Climate Solutions to contribute about 20% to reported sales growth in 2024, Chief Financial Officer Patrick Goris said during the company's fourth-quarter earnings call in February. The offloading of the global access solutions security and commercial refrigeration businesses is set to have a negative impact of 5% on the topline, Goris told analysts at the time.

The heating and air conditioning equipment maker said it is moving forward with efforts to divest its combined commercial and residential fire operations, the last of its four announced business exits. The company plans to resume share repurchases once it returns to roughly two times net leverage by the end of this year.

Sentinel Capital, which invests in corporate divestitures and going-private transactions, among others, in the US and Canada, has raised more than $11.2 billion of capital since its inception, according to information posted on its website.

Sentinel didn't respond to MT Newswires' request for comment.

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