Haier’s Carrier refrigeration purchase kickstarts expansion

Chinese manufacturing giant Haier is set to increase its influence in the HVAC and refrigeration market, following Haier Smart Home’s $775 million (£607.5m) purchase of Carrier Commercial Refrigeration.

The UK will be a key market as it expands into a full-service HVACR supplier, as the manufacturer is known to still have European acquisition targets in commercial building heating and cooling to add to its new refrigeration business.

The transaction is not expected to close until the second half of 2024, subject to regulatory approval. The new commercial refrigeration business is expected to be run as a standalone operation within Haier Smart Home in 2024.

The purchase will allow Haier to enter new markets in food retail and cold storage.

Li Huagang, chairman and chief executive of Haier Smart Home, said:

The acquisition will help Haier Smart Home establish its commercial refrigeration platform, enabling the company to capture additional growth opportunities by expanding its presence to food retail refrigeration and cold storage.

Carrier Commercial Refrigeration has more than 4,000 global employees and a sales and service network spanning Europe and the Asia Pacific region. Its brands include Profroid, Celsior and Green & Cool. .

Carrier Chairman & CEO David Gitlin said:

Following our decision to exit the commercial refrigeration business and a robust competitive process, we identified Haier as the right fit to grow the business moving forward, building upon our successful 22-year refrigeration partnership with them.

Executing this definitive agreement demonstrates continued progress in our portfolio transformation, further positioning Carrier as the global leader in intelligent climate and energy solutions.

For its part, Carrier will be focused on integrating the Viessmann Climate Solutions operation from January, following the European Commission’s approval of the €12bn cash and stock deal. The huge deal brings Carrier a range of residential air-to-water heat pumps, together with solar pv and battery storage product lines.