How Carrier Global is remaking itself
Carrier Global's (CARR) acquisition of Viessmann Climate Solutions SE was finalized on Tuesday morning after the deal was approved by the European Union. The company recently sold its Global Access Unit to Honeywell (HON) and is currently in the process of divesting in other businesses. Dave Gitlin, Carrier Global's Chairman and CEO, joins Yahoo Finance to discuss the changes the company is making and how the company is trying to put more effort in sustainability.
Gitlin explains some of the advantages that comes with the recent acquisition : "What really differentiates them [Veissman Solutions] is, number one, their channel. They have a direct to installer relationship with 80,000 individual installers. Number two is their brand. It's respected, obviously, throughout Germany but throughout Europe as well. They have a technology advantage. They're the only company in the world that has complete home energy management solutions."
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Video Transcript
- Carrier Global closing its acquisition of Viessmann Climate Solutions today, after the deal was approved recently by the European Union. And the company has been busy in the deal space, selling a commercial refrigeration business to Honeywell for nearly $5 billion last month, and it's putting other businesses up for sale this year. Joining us now is David Gitlin, Carrier Global Chairman and CEO. Thank you so much for being here.
DAVID GITLIN: Thank you, Julie. Thank you, Josh.
- And you have been making these changes. But really it's about an overall remaking of Carrier, right? So talk to us about the vision of how investors, how the public should think about what the new Carrier is.
DAVID GITLIN: It started with our north star, which is to be the global leader in intelligent climate and energy solutions. Effectively, all things come back to sustainability for us. So we actually are in the process of divesting one of our three divisions, our fire and security business, because we said that did not ladder up to our north star. Our stationary refrigeration or refrigeration business, we just announced the sale for that.
And the really exciting thing that we closed on this morning was buying a company that's all about sustainability. It's this Viessmann Climate Solutions business that not only does heat pumps, which is electric, it's a transition away from gas boilers to heat pumps, but they also do solar PV, they do battery storage, they do complete home energy management solutions with the heat pump, with the utility interlay, overlay.
So it's really, for us, all about sustainability. And when you think about business, the ability to be part of a transformation of a company is one of the most exciting things. So we are so energized about 2024, and we're starting on a great foot with our closure of Viessmann Climate Solutions today.
- And Dave, for Viessmann, I'm just interested, so it's not the only player in Europe. What's the competitive landscape look like over there and what are Viessmann's advantages?
DAVID GITLIN: Well, it's very difficult to break into the residential HVAC space in Europe. We're usually number one or two in just about every space, number one in commercial for HVAC in Europe. But when you look at the residential space, it's many multi-generational family owned businesses. And we happen to hit it off because we are so complementary.
What really differentiates them is number one, their channel. They have a direct to installer relationship with 80,000 individual installers. Number two, is their brand. It's world, it's respected obviously throughout Germany, but throughout Europe as well. They have a technology advantage, and they're the only company in the world that has complete home energy management solutions.
