Carrier Global Corporation, the leading global provider of healthy, safe, sustainable and intelligent building and cold chain solutions, signed a binding agreement to acquire Toshiba Corporation’s ownership stake in Toshiba Carrier Corporation (TCC), a variable refrigerant flow (VRF) and light commercial HVAC joint venture with Carrier. The planned acquisition will strengthen Carrier’s position in one of the fastest-growing HVAC segments, as well as scale its global VRF product platform with leading and differentiated technology and the addition of a renowned brand to its portfolio.
Established in 1999, TCC designs and manufactures flexible, energy-efficient and high-performance VRF and light commercial HVAC systems utilizing its own proprietary inverter technology, as well as commercial products, compressors and heat pumps. VRF delivers high-performance heating and cooling through systems that are typically all-electric and highly efficient, consistent with Carrier’s sustainability goals to reduce its customers’ carbon footprint by more than one gigaton by 2030.
Carrier’s acquisition will include all of TCC’s advanced research & development centers and global manufacturing operations, strong product pipeline, and the long-term use of Toshiba’s deeply respected and iconic brand.
“Carrier sees significant growth potential in the global VRF, light commercial and heat pump segments and is excited by the opportunity to expand our business through this strategic acquisition. TCC’s proven R&D expertise, strong global brand and talented employees will be tremendous additions to Carrier’s multi-brand channel strategy,” said Dave Gitlin, Chairman & CEO, Carrier. “We look forward to offering complementary, high-performance and sustainable solutions to our customers that will help them achieve their environmental goals.”
The global market for VRF and light commercial equipment is the fastest growing HVAC equipment segment. Upon close, the acquisition will position Carrier as a VRF leader, more than doubling its sales in the market segment.
“We are pleased that TCC employees will continue the growth and innovation journey of Toshiba’s HVAC business as part of Carrier, benefiting from its unparalleled global reach, strong dealer network and shared history of innovation,” said Satoshi Tsunakawa, President & CEO, Toshiba. “This is a value-enhancing opportunity for investors, customers and employees.”
The recent announcement builds on Carrier’s recent acquisition of Guangdong Giwee Group, a China-based manufacturer of HVAC products, offering a portfolio of high-quality products including VRF and light commercial air conditioners. Combined with Carrier’s existing partnerships, the acquisition strengthens Carrier’s portfolio of innovative, environmentally responsible solutions with a broader range of highly efficient, all-electric products, positioning Carrier to lead the world’s heating and cooling sustainability transformation.
The acquisitions also demonstrate the company’s commitment to investing in growth, while delivering on Carrier’s commitment to increase product extensions and broaden geographic coverage. In addition, the acquisition is also another step in Carrier’s continuing efforts to simplify its HVAC joint venture structure.
The acquisition is expected to close by the end of Q3, subject to customary closing conditions, including regulatory approvals. Upon closing, Toshiba will retain a 5% ownership stake in TCC, and Carrier will consolidate over $2 billion in unconsolidated revenue.
