Carrier Global divests Industrial Fire Business to Sentinel Capital Partners for $1.4bn

In a significant strategic move, Carrier Global Corporation, a leader in intelligent climate and energy solutions, has finalized the sale of its Industrial Fire business to Sentinel Capital Partners. The transaction, valued at an enterprise value of $1.425 billion, marks a pivotal shift in Carrier’s portfolio optimization strategy.

Carrier, based out of Palm Beach Gardens, Florida, aims to utilize the net proceeds from this sale to significantly reduce its debt. The company’s financial strategy is set to achieve approximately 2x net leverage by the end of 2024. Furthermore, Carrier has indicated plans to resume share repurchases in 2024, signaling a robust financial posture and commitment to delivering shareholder value.

Sentinel Capital Partners, a renowned private equity firm known for its investments in promising mid-market companies, has established Spectrum Safety Solutions through this acquisition. This new entity will operate as a standalone platform, specializing in industrial fire detection and suppression products and services. Spectrum Safety Solutions will incorporate highly recognized industrial safety brands such as Det-Tronics, Marioff, Autronica, and Fireye.

Headquartered in Stamford, Connecticut, Spectrum Safety Solutions plays a crucial role in protecting critical infrastructure across various sectors, including marine, clean energy, and other industrial markets. With operations spanning over 20 countries, Spectrum is backed by a global workforce of approximately 1,400 employees and manufacturing facilities located in Bloomington, Minnesota; Derry, New Hampshire; Trondheim, Norway; and Kerava, Finland.

Sentinel’s acquisition of Carrier’s Industrial Fire business not only expands its footprint in the industrial sector but also complements its existing portfolio, which includes companies like Chromalox, ECM Industries, IEP Technologies, LTI Boyd, Nekoosa, Power Products, RotoMetrics, and Sonny’s. Each of these companies brings unique capabilities in engineered products and services, enhancing Sentinel’s competitive edge in the market.

This transaction is indicative of the dynamic nature of the industrial and safety sectors, where strategic divestitures and acquisitions play critical roles in reshaping company portfolios and focusing on core competencies. For Carrier, this move is a strategic step toward streamlining operations and strengthening its financial structure, while for Sentinel, it represents a significant expansion of its capabilities and market presence in the industrial safety arena.