The transaction marks another step forward in Carrier’s portfolio transformation, further strengthening the company’s global leadership position in intelligent climate and energy solutions, the company said in a press release.

The combination adds a premier brand with a differentiated, direct-to-installer model and a key provider of efficient and renewable climate solutions with a 100-plus-year record of innovation to Carrier’s portfolio, Carrier said. Viessmann Climate Solutions has 12,000 team members, further strengthening Carrier’s position as an HVAC provider, and positioning Carrier in the fast-growing residential and light commercial (RLC) market in Europe, the company said.

Thomas Heim, who previously led Viessmann Climate Solutions, will lead Carrier RLC HVAC in Europe, the Middle East, and Africa, which includes Viessmann Climate Solutions and Carrier’s RLC business in the region, including Riello.

“The combination with Viessmann Climate Solutions creates the most comprehensive and differentiated suite of sustainable climate technologies and services in the industry today,” said Carrier chairman and CEO David Gitlin.

Effective immediately, Max Viessmann, CEO of the Viessmann Group, joins Carrier’s board of directors.

“I look forward to working closely with Dave and his leadership team as well as my fellow board directors to build a future-proof, truly global climate champion,” said Viessmann. “I could not be more excited about this combination, which lays the perfect basis to capture growth opportunities and maximize impact for generations to come.”