Honeywell acquires Carrier’s Global Access Solutions for $4.95 billion

CHARLOTTE, N.C.—Honeywell announced plans to enhance and strengthen its building automation capabilities with the acquisition of Carrier Global Corporation’s Global Access Solutions business for $4.95 billion in an all-cash transaction.

The acquisition will add three respected brands to Honeywell’s portfolio with a focus on life safety and digital access solutions, including:

• LenelS2, a business for over 25 years in commercial and enterprise access solutions, including well-known offerings OnGuard and NetBox, used by numerous Fortune 100 customers.
• Onity, which offers electronic locks, including hospitality access, mobile credentials, and self-storage access. Nine of the 10 top hotel chains are customers.
• Supra’s cloud-based electronic real estate lockboxes offer mobile credentials and access management, as well as a digital platform to optimize scheduling for property showings.

According to Honeywell, this acquisition will enable the company to become a leading provider of security solutions for the digital age.

The acquisition, which includes both hardware and software solutions, further supports Honeywell’s recently announced plans to align its portfolio to three compelling megatrends: automation, the future of aviation and energy transition, underpinned by robust digitalization capabilities and solutions.

In addition, the Global Access Solutions business will enhance Honeywell Building Technologies’ business model of leading with high-value products that are critical for buildings, Honeywell said.

The business brings an attractive growth and margin profile that will be accretive to Honeywell with valuable software content, resilient business model and strong sources of recurring revenue. 

When the deal closes, the combined company will be able to accelerate innovation, bringing products and capabilities to customers that are increasingly moving to cloud-based services and solutions.

“Honeywell’s strong track record delivering building automation products and services makes this a natural fit that will create a leading security platform with forecasted annual revenue in excess of $1 billion,” said Vimal Kapur, chief executive officer, Honeywell. “By leveraging the capabilities of the combined company’s advanced security and safety systems, customers will be able to maximize their performance, efficiency and cost-effectiveness and create long-term, sustainable value.”

The purchase price represents approximately 13x 2023E EBITDA, inclusive of tax benefits and run-rate cost synergies. The transaction is expected to be cash-EPS accretive in the first full year of ownership.

With approximately 1,200 employees operating in 33 countries, Carrier's Global Access Solutions business is a provider of advanced access and security solutions, electronic locking systems, and contactless mobile key solutions. This pending sale will allow the business to build on the strength of its leading brands, innovative solutions, strong partner relationships and high growth potential, according to Carrier.

"Global Access Solutions is a great business with dedicated, customer-focused teams, and we look forward to watching its continued growth under the ownership of Honeywell," noted Carrier Chairman & CEO David Gitlin. "The transaction, together with the planned exits of our industrial fire, residential and commercial fire, and commercial refrigeration cabinet businesses, will accelerate our growth strategy and focus, positioning Carrier to deliver higher growth and superior shareholder value and further reinforcing our track record of performing while transforming."

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.

Evercore Inc. is serving as financial advisor to Honeywell. Skadden, Arps Slate, Meagher & Flom, Simmons & Simmons and Womble Bond Dickinson are providing external legal counsel.