Honeywell, a Charlotte, North Carolina-based electronics manufacturer, is planning to spend $4.95 billion to buy a security business from a South Florida company, officials announced Friday.
The deal with Carrier Global Corp., a climate and energy firm, allows Honeywell to take over Carrier Global Access Solutions, which includes several brands focused on digital security.
The deal also supports Honeywell’s work to realign its business portfolio into what it has called “three megatrends” to improve growth: automation, the future of aviation and energy transition. Honeywell had announced that move in October.
The deal with Carrier is expected to close by the third quarter of 2024.
Honeywell CEO Vimal Kapur called the acquisition a natural fit because of Honeywell’s track record of delivering building automation products and services. Kapur said that the deal will create a security platform that is expected to produce annual revenue in excess of $1 billion.
The pending sale will allow Carrier to focus on other business matters and help pay down debt for the Palm Beach Gardens, Fla.-based company, officials said in a news release.
Honeywell provides services for aerospace, building technologies, performance materials and technologies, in addition to safety and productivity services.
The company has 1,300 employees in Charlotte and nearly 100,000 workers worldwide.
In 2018, Honeywell announced it would move its global headquarters from New Jersey to Charlotte, in part due to to $87 million worth of state and local incentives. In December 2021, Honeywell officially opened its 23-story uptown headquarters on South Mint Street.
In April, it detailed plans to buy an Iowa and gas compressor company for $670 million.
And in June, company veteran Kapur took over as CEO, replacing Darius Adamczyk.
Carrier’s Global Access Solutions business produces advanced access and security hardware and software solutions, electronic locking systems, and contactless mobile key solutions. It employs 1,200 people in 33 countries.
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