Carrier Corp. is among three business segments of United Technologies Corp. (UTC)(NYSE: UTX) that the firm intends to separate into independent entities.
The separation will result in three separate global companies, Farmington, Connecticut–based UTC said in its news release.
At the same time, UTC also announced the completion of its acquisition of Cedar Rapids, Iowa–based Rockwell Collins (NYSE: COL).
Carrier is a provider of heating, ventilation, and air conditioning (HVAC); refrigeration; building automation; fire safety; and security products. Carrier is a part of the UTC Climate, Controls & Security unit.
The company has research and development operations in DeWitt. That location employs “over 1,000” people, Jon Shaw, a company spokesman, said in an email response to a BJNN inquiry.
He also provided BJNN Carrier Corp.’s statement reacting to UTC’s announcement.
“This week’s announcement marks the beginning of an exciting journey for all of us. Splitting into independent, focused entities will position us to deliver greater value to our customers, generate long-term growth for our shareholders and provide fulfilling career opportunities for our employees. We look forward to working closely with UTC as we move into our next chapter thoughtfully and deliberately, while maintaining focus on our number one priority – our customers. As a first step in this transition, UTC Climate, Controls & Security will transition its name to Carrier, retaining its many industry-leading HVAC, refrigeration, fire, security and building automation brands as part of its broader business,” Carrier said.
Carrier generated 2017 sales of $17.8 billion. The company includes brands such as Carrier, Kidde, Edwards, LenelS2, and Automated Logic.
UTC’s separation plan
Besides Carrier, UTC will separate into entities that include United Technologies, which is comprised of Collins Aerospace Systems and Pratt & Whitney. It’ll be a systems supplier to the aerospace and defense industry.
Collins Aerospace was formed through the combination of UTC Aerospace Systems and Rockwell Collins.
The third independent will be Otis, a manufacturer of elevators, escalators, and moving walkways.
“Our decision to separate United Technologies is a pivotal moment in our history and will best position each independent company to drive sustained growth, lead its industry in innovation and customer focus, and maximize value creation,” Gregory Hayes, chairman and CEO of United Technologies, contended in the release. “As standalone companies, United Technologies, Otis and Carrier will be ready to solve our customers’ biggest challenges, provide rewarding career opportunities, and contribute positively to communities around the world.”
UTC expects to complete the separation in 2020, with split-up activities occurring within the next 18 to 24 months, even though the firm notes that “there can be no assurances regarding the ultimate timing of the separation or that the separation will be completed.”
Contact Reinhardt at ereinhardt@cnybj.com