Carrier Global Corporation, a Florida-based OEM specializing in air-conditioning and commercial refrigeration, has finalized its €12 billion ($13.1 billion) acquisition of German heat pump manufacturer Viessmann Climate Solutions from the Viessmann Group.
The acquisition, announced in April of 2023, was finalized after securing approval from the European Commission in December.
Heat pumps and related services make up 70% of Viessmann Climate Solutions’ business. The company manufactures propane (R290)-based residential and commercial heat pumps and has seen a spike in demand in recent years, with sales increasing 15% annually since 2020 according to Reuters.
“The combination with Viessmann Climate Solutions creates the most comprehensive and differentiated suite of sustainable climate technologies and services in the industry today,” said Carrier CEO and Chairman David Gitlin in a press release.
“The transaction will transform Carrier’s business into a higher growth business with a clear focus and mandate on global leadership in intelligent climate and energy solutions,” Gitlin added.
As a result of its acquisition, Carrier estimates that its annual revenue will reach €15.5 billion (US$16.9 billion). Part of that will come from streamlining its portfolio, with the company previously announcing that it will exit from its fire and security and commercial refrigeration businesses. Carrier announced on December 13 an agreement to sell its European commercial refrigeration business to Haier Smart Home, a division of Chinese manufacturer Haier, for an enterprise value of $775 million (€705.1 million).
Viessmann Climate Solutions’ CEO Thomas Heim will become President, Residential and Light Commercial HVAC for Carrier in the EMEA region. Max Viessmann, CEO of the Viessmann Group, will join Carrier’s Board of Directors. “I could not be more excited about this combination, which lays the perfect basis to capture growth opportunities and maximize impact for generations to come,” Viessmann said, adding that the team intends to build “a future-proof, truly global, climate champion.” Viessmann Climate Solutions’ more than 12,000 employees will join Carrier.
“The addition of Viessmann Climate Solutions positions Carrier as a digitally enabled, scalable, end-to-end sustainable climate and energy solutions provider that addresses all heating, cooling, renewables, solar PV, battery storage and energy management needs for the home,” Carrier said.
“We are taking the next step [to] move beyond heating solutions towards an ecosystem of strong co-creators who take responsibility for future generations by fostering solutions in all facets of sustainable energy,” said Martin Viessmann, Chairman of the Board for the Viessmann Group “We are combining the best of two worlds: a broadly positioned Viessmann Group and a global partnership with Carrier for the climate solutions business area.”
“The combination with Viessmann Climate Solutions creates the most comprehensive and differentiated suite of sustainable climate technologies and services in the industry today.”David Gitlin, Carrier CEO and Chairman