Commercial safety service provider APi Group Corp said on Tuesday it would buy Chubb Fire & Security Business from Carrier Global Corp for $2.9 billion in cash to expand into new markets.
As part of the deal, Blackstone Group and Viking Global Investors will together invest $800 million by way of perpetual preferred stock.
“We see a tremendous amount of accelerated organic growth and margin expansion opportunities across our combined platform,” Chief Executive Russ Becker said.
Chubb Fire & Security reported revenue of about $2.2 billion for the year ended March 31 and the deal is expected to close around the year-end.
Citi and RBC Capital Markets acted as advisors to APi.
Source: Reuters.com