- The stock price of APi Group Corp (NYSE: APG) increased by 9.44%. This is why it happened.
The stock price of APi Group Corp (NYSE: APG) increased 9.44%, going from a previous close of $20.34 to $22.26. Investors are responding positively to Carrier Global Corporation (NYSE: CARR) — a leading global provider of healthy, safe, sustainable, and intelligent building and cold chain solutions — agreeing to sell its Chubb fire and security business to APi Group for an enterprise value of $3.1 billion.
This sale enables Carrier to focus on its core businesses and to re-allocate net proceeds consistent with its stated capital allocation priorities, including funding organic and inorganic growth, dividends, and share repurchases within a solid investment-grade credit rating.
Launched in the United Kingdom, Chubb has approximately 13,000 employees globally and a sales and service network spanning 17 countries in Europe, Asia Pacific, and Canada. And the business is a globally recognized fire safety and security provider, offering customers complete and reliable services from design and installation to monitoring and ongoing maintenance. Carrier’s global fire and security products business is not part of the transaction and remains an important part of Carrier’s portfolio and our healthy, safe, sustainable and intelligent building strategy.
The proposed sale is subject to consultation and regulatory approvals. And it is expected to close in late Q4 2021 or early Q1 2022. The management will provide additional details on the transaction and use of proceeds during its second-quarter 2021 earnings call on July 29, 2021.
KEY QUOTE:
“Carrier continually assesses all aspects of our global portfolio to ensure alignment with our strategic business priorities and optimal value for our stakeholders. This transaction drives greater focus for Carrier and allows us to re-allocate proceeds from the divestiture toward our higher strategic imperatives. It also provides Chubb the opportunity to unlock new potential, building on its history and dedication to customer service excellence, its 200-year brand legacy, and highly skilled network of global service providers and technicians. We look forward to seeing the growth potential Chubb will have under the ownership of APi Group.”
— Carrier Chairman & CEO Dave Gitlin
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
