Carrier to Acquire European Leader in Commercial Refrigeration
Mar 16, 2004
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United Technologies Corp. announced its Carrier subsidiary has reached a definitive agreement to acquire Linde AG's Refrigeration division for approximately 255 million euros (approx. U.S. $305 million), including estimated debt upon closing. In addition, Carrier agreed to assume approximately 70 million euros (approx. $85 million) of pension and related obligations. The transaction is subject to regulatory approvals.
The Refrigeration division employs 6,300 people and is said to lead in European commercial refrigeration with annual sales of approximately $1 billion (866 million euros, including the German dry shelving business with sales of 28 million euros, which is not part of this transaction). It is headquartered in Cologne, Germany and has manufacturing facilities in Europe, Asia, and South America. Products include refrigerated display cases and subsystems and industrial and commercial refrigeration systems. Combining Carrier and the Linde unit will allow both companies to leverage each other's distribution channels while creating synergistic opportunities in research and development and in sourcing, Carrier said in a statement.
"The combined entity created by Carrier's acquisition of Linde's Refrigeration business will provide customers around the world a wider portfolio of high quality, technologically advanced commercial refrigeration choices," said Geraud Darnis, president of Carrier Corp. "The two companies balance each other well geographically, in product and service ranges, and in a shared focus on environmentally sensitive technologies.
"Together, we will better serve the needs of customers worldwide, bringing them the high quality, respected franchises of both Linde and Carrier," Mr. Darnis continued.
Linde AG is an international technology company based in Wiesbaden, Germany that also has Material Handling, Gas, and Engineering business segments. It has combined annual sales of approximately $13 billion (9 billion euros).
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