PALM BEACH GARDENS,FL — Carrier Global Corporation 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.

Established in 1999, TCC designs and manufactures flexible, energy-efficient VRF and light commercial HVAC systems utilizing its own proprietary inverter technology, as well as commercial products, compressors, and heat pumps.

Carrier's acquisition will include all of TCC's advanced research and development centers and global manufacturing operations, and product pipeline.

"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 and CEO, Carrier. "We look forward to offering complementary, high-performance and sustainable solutions to our customers that will help them achieve their environmental goals."   

"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 and CEO, Toshiba. "This is a value-enhancing opportunity for investors, customers, and employees."

Today's announcement builds on Carrier's recent acquisition of Guangdong Giwee Group, a China-based manufacturer of HVAC products, offering a portfolio of products including VRF and light commercial air conditioners. Combined with Carrier's existing partnerships, the acquisition strengthens Carrier's portfolio of solutions with a broader range of highly efficient, all-electric products.

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.

The company will provide additional information on this transaction during its earnings call scheduled for Tuesday, Feb. 8 at 8:30 a.m.