HVAC, refrigeration and sustainable building solutions company Carrier announced a series of moves aimed at positioning the company as a pure-play climate and energy solutions leader, including the acquisition of heat pump and energy transition-focused heating solutions manufacturer Viessmann Climate Solutions for €12 billion (USD$13.3 billion).
HVAC, refrigeration and sustainable building solutions company Carrier announced a series of moves aimed at positioning the company to focus on climate and energy solutions opportunities, including the acquisition of heat pump and energy transition-focused heating solutions manufacturer Viessmann Climate Solutions for €12 billion (USD$13.3 billion).
Alongside the planned spinoff of its Fire & Security and Commercial Refrigeration cabinet businesses, Carrier said that the moves will position the company as a “pure-play, global leader in intelligent climate and energy solutions.”
Describing the acquisition as a “game-changing opportunity,” Carrier Chairman & CEO David Gitlin said that the transaction comes as “climate change, sustainability requirements and geopolitical factors are driving an unprecedented energy transition in Europe.”
“Accelerated by government regulations and incentives, the transition creates a significant, long-term growth opportunity. Viessmann Climate Solutions is uniquely positioned to capitalize on this opportunity with its premier brand, highly differentiated distribution channel and innovative product offerings.”
Viessmann Climate Solutions is the largest segment of privately-held company Viessmann Group. Approximately 70% of the unit’s business consists of heat pumps – rapidly emerging as a key energy efficient and climate-friendly alternative solution to furnaces and air conditioners – as well as related accessories, solar PV, batteries and services.
Last year, Viessman announced plans to invest €1 billion to expand its manufacturing footprint and R&D labs for green climate solutions over three years, with a particular focus on heat pumps.
Max Viessmann, CEO of Viessmann, said:
“Our purpose is to create living spaces for generations to come. Carrier’s global reach, broad product portfolio, financial strength and shared commitment to sustainability will enable our Climate Solutions business to fully capitalize on our innovative, integrated solution offering and maximize our impact on Europe’s independent energy transition.”
The acquisition and planned spinoff marks the latest in a series of climate-focused moves for Carrier. In 2020, following its separation from United Technologies Corporation, Carrier announced a goal to help its customers avoid more than 1 gigaton of GHG emissions by 2030. Earlier this year, the company added a new sustainability target to achieve net zero emissions across its value chain by 2050, including both direct operational as well as indirect emissions.
“The Viessmann Climate Solutions acquisition and planned exit of Fire & Security and Commercial Refrigeration will further simplify our business portfolio and accelerate our strategy to establish Carrier as the global leader in intelligent climate and energy solutions.”