Sentinel Capital Partners has formed Spectrum Safety Solutions as a new platform, and it has acquired the industrial fire business of publicly traded Carrier Global at an enterprise value of $1.4 billion.
Spectrum is a manufacturer of industrial fire detection and suppression products sold under the Autronica, Det-Tronics, Marioff, and Fireye brands. Spectrum’s products and services are used by companies that operate in the infrastructure, marine, clean energy, and other industrial markets in more than 20 countries.
Stamford, Connecticut-headquartered Spectrum, led by CEO Rajan Goel, has more than 1,400 employees with manufacturing facilities in Minnesota, New Hampshire, Norway, and Finland.
“We are extremely pleased to partner with Sentinel. Our new partnership will enable us to sharpen the focus of the business, dedicate additional resources to our leading brands, and accelerate growth,” said Mr. Goel. “The Spectrum team is very strong globally, and with Sentinel’s support, we will be able to serve our customers more effectively in the next stage of growth.”
“We look forward to working with Spectrum’s talented management team to further build its exceptional platform,” said Eric Bommer, a partner at Sentinel. “Spectrum owns great brands, has a long history of serving its many global customers, and has exciting growth opportunities.”
Carrier Global (NYSE: CARR) specializes in heating, ventilation, air conditioning, refrigeration, and building automation technologies used in the residential, commercial, and industrial sectors. The company designs, manufactures, and distributes a range of products including air conditioners, heat pumps, furnaces, refrigeration systems, fire and security products. Florida-headquartered Carrier Global was founded in 1915 and was spun off from United Technologies in 2020.
The sale of Carrier’s industrial fire business follows the December 2023 announcement of the sale of the company’s commercial refrigeration business to Haier Smart Home, a division of Chinese manufacturer Haier, for $775 million. This transaction is expected to close withing the next few months. Last month, Carrier closed the sale of its security business, Global Access Solutions, to Honeywell at an enterprise valuation of $4.95 billion.
“We continue to make great progress on our planned business exits, with today marking the second completed sale of Carrier’s portfolio transformation process,” said David Gitlin, the chairman and CEO of Carrier Global. “We expect to close the Commercial Refrigeration sale by the end of the third quarter of this year, and the sale process of Commercial and Residential Fire is progressing as expected. I want to extend my personal thanks to the Industrial Fire employees for their contributions to the business and our customers over the years.”
New York City-based Sentinel invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of businesses with EBITDAs up to $65 million. The firm targets eight industry sectors: aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrials.
Goldman Sachs and J.P. Morgan Securities are the financial advisors to Carrier on this transaction.
© 2024 Private Equity Professional | July 10, 2024
