Honeywell to buy security unit of Carrier for $5 billion

Carrier Global Corp.
CARR,
-0.23%
was up 5% in premarket trading on Friday after it confirmed plans to sell its security unit to Honeywell International
HON,

for $4.95 billion. Carrier said it plans to use $4 billion of the sale proceeds to pay down debt. The acquisition of the maker of electronic locks for hotels and hospitals will be added to Honeywell’s Building Automation unit. It’s also a way for Honeywell to address a rise in demand for cloud-based products. Earlier, The Wall Street Journal reported the deal was underway. Honeywell stock is down 7.7% in 2023, compared with a 19.4% gain by the S&P 500
SPX,
+0.80%.