International. Honeywell confirmed the acquisition of Carrier Global Corporation's Global Access Solutions security business for $4.95 billion in an all-cash transaction that includes the LenelS2, Onity and Supra brands.
The Global Access Solutions business will enhance Honeywell Building Technologies' business model and add three well-known brands with a focus on human safety and digital access solutions:
*LenelS2, a company with more than 25 years of experience in business and enterprise access solutions, including the well-known OnGuard and NetBox offerings, used by numerous Fortune 100 customers.
*Onity, which offers electronic locks, including hospitality access, mobile credentials, and storage access. Nine of the top ten hotel chains are customers.
*Supra , cloud-based electronic real estate lockboxes, offering mobile credentials and access management, as well as a digital platform to streamline property show scheduling.
When the deal closes, the combined company will be able to accelerate innovation, offering products and capabilities to customers who are increasingly migrating to cloud-based services and solutions.
"Honeywell's strong track record in delivering building automation products and services makes it a natural choice that will create a leading security platform with projected annual revenues of more than $1 billion", said Vimal Kapur, CEO of Honeywell. "By leveraging the capabilities of the combined enterprise's advanced safety and security systems, customers will be able to maximize their performance, efficiency and profitability and create long-term, sustainable value".
"Global Access Solutions is a great company with dedicated, customer-focused teams, and we look forward to seeing its continued growth under Honeywell's ownership", said Carrier President and CEO David Gitlin. "The transaction, coupled with the planned exits of our industrial fire cabinet, residential and commercial fire and commercial refrigeration businesses, will accelerate our growth strategy and focus, positioning Carrier to deliver further growth and superior shareholder value and further reinforcing our track record as we transform".
The purchase price represents approximately 13 times 2023E EBITDA, including tax benefits and run rate cost synergies. The transaction is expected to accrue cash in EPS during the first full year of ownership.
The transaction is expected to close by the end of the third quarter of 2024, subject to customary closing conditions, including receipt of certain regulatory approvals.
