Bank of America Corp. plans to allocate $1.83 billion in borrowed funds to Lone Star Funds for the acquisition of Carrier Global Corp.'s Commercial and Residential Fire business. This transaction, valued at approximately $3 billion, was announced in a Carrier press release and aligns with the company's strategy to optimize its asset portfolio.

The deal, signed in early August 2024, marks a significant step in Carrier's restructuring efforts. The company has already completed asset sales exceeding $10 billion, including the recent acquisition of Viessmann Climate Solutions and the divestiture of its Industrial Fire and Global Access Solutions divisions. The sale of the Commercial and Residential Fire business is a key milestone in this ongoing transformation.

Completion of the transaction is anticipated by the end of 2024, pending regulatory approval and standard closing conditions. Carrier intends to utilize the net proceeds of approximately $2.2 billion from this sale to repurchase shares, further enhancing shareholder value.

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are serving as financial advisers for Carrier, while legal counsel is provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP.

Carrier Global Corp. is a leading American multinational corporation specializing in heating, ventilation, air conditioning systems, refrigeration equipment, and fire safety products, headquartered in Palm Beach Gardens, Florida. Lone Star Funds, based in Dallas, Texas, is a prominent investment firm focused on distressed assets, having established 21 private equity funds with total investments of $86 billion. Its investor base includes corporate and government pension funds, sovereign wealth funds, charitable foundations, and high-net-worth individuals.

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