New Brighton-based APi Group announced it is spending $3.1 billion to acquire the fire and security business of Carrier Global Corp., which will help make APi a global leader in life safety.
APi, a provider of safety, specialty and industrial services, is acquiring Carrier's Chubb Fire & Security Business that is based in London. Carrier's global fire and security products business are not part of the sale.
"This is a very exciting day in the history of APi. We have spent a tremendous amount of time evaluating several transformative opportunities as well as more traditional acquisitions," said APi Chief Executive Russ Becker in a news release. "With the acquisition of Chubb, we see a tremendous amount of accelerated organic growth and margin expansion opportunities across our combined platform."
Combined the two companies have more than 26,000 employees and annual revenue of about $5.6 billion. If the deal goes through, APi would become one of the 20 largest public companies in Minnesota and among the 10 largest employers.
The purchase price for Chubb includes $2.9 billion in cash and $200 million in debt and other adjustments. It will be financed through APi's existing cash and new debt and equity financing.
As part of the deal structure APi Group will get a combined $800 million investment in the form of perpetual preferred equity from Blackstone, the New York-based alternative investment management firm, and Viking Global Investors a Connecticut based hedge fund.
The deal is expected to close near the end of 2021.
Chubb is based in the United Kingdom and has a corporate history dating back more than 200 years. Its revenue for the 12 months ended March 31 was $2.2 billion, with net profits of $213 million. It operates in 17 countries with a strong presence in France, the United Kingdom, Australia, Canada, Hong Kong and the Netherlands.
