UTC CEO Confirms Sale of Fire & Security Business
Greg Hayes, UTC chairman and CEO.
United Technologies Corp said Monday the Otis and Climate, Controls & Security (CCS) businesses will become independent companies, and CCS will be renamed Carrier, while the divesture of its fire and security business continues to be explored.
In a conference call with investors Tuesday, UTC Chairman and CEO Greg Hayes said “the fire and security field business” within CCS generates “roughly $US2.5 billion of sales,” while referencing it as a “roughly 10 per cent margin kind of business.”
During the call, Hayes confirmed there is a process in place to divest the company’s fire and security business.
“The focuses of Carrier going forward is going to be on products and services, not on installation and field,” Hayes said. “If we choose to divest the Fire and Security field business, it will be really to give us a better focus going forward of the products and services portfolio,” he said.
UTC built its Fire & Security unit with purchases including Lenel Systems, an access control and software developer; Chubb, a fire safety and security services business; and Kidde, a British fire and safety company. In September, UTC reached an agreement to acquire S2 Security, a leading developer of unified security and video management solutions.
UTC said it expects splitting up the company will take 18 to 24 months.