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New Brighton-based APi Group announced it is spending $3.1 billion to acquire the fire and security business of Carrier Global Corp., which will help make APi a global leader in life safety.

APi, a provider of safety, specialty and industrial services, is acquiring Carrier's Chubb Fire & Security Business that is based in London. Carrier's global fire and security products business are not part of the sale.

"This is a very exciting day in the history of APi. We have spent a tremendous amount of time evaluating several transformative opportunities as well as more traditional acquisitions," said APi Chief Executive Russ Becker in a news release. "With the acquisition of Chubb, we see a tremendous amount of accelerated organic growth and margin expansion opportunities across our combined platform."

Combined the two companies have more than 26,000 employees and annual revenue of about $5.6 billion. If the deal goes through, APi would become one of the 20 largest public companies in Minnesota and among the 10 largest employers.

The purchase price for Chubb includes $2.9 billion in cash and $200 million in debt and other adjustments. It will be financed through APi's existing cash and new debt and equity financing.

As part of the deal structure APi Group will get a combined $800 million investment in the form of perpetual preferred equity from Blackstone, the New York-based alternative investment management firm, and Viking Global Investors a Connecticut based hedge fund.

The deal is expected to close near the end of 2021.

Chubb is based in the United Kingdom and has a corporate history dating back more than 200 years. Its revenue for the 12 months ended March 31 was $2.2 billion, with net profits of $213 million. It operates in 17 countries with a strong presence in France, the United Kingdom, Australia, Canada, Hong Kong and the Netherlands.

About 39% of Chubb's annual revenue is in fire detection and alarm services, 36% in electronic security and the remainder in monitoring and portable fire extinguishers.

APi had an initial public offering in May 2020. It reported annual revenue of $3.6 billion from its safety, specialty and industrial services that operated under about 32 different company names and in 200 locations worldwide.

The company's safety services also include fire protection and HVAC and specialty systems from construction to pipeline services.

The deal will greatly extend APi Group's geographic reach. Last year, 93% of APi's sales were in the United States with the remainder in Canada and Europe. The two companies combined will drive nearly 59% of revenue from the U.S.; 30% from Canada and Europe; and about 10% from Asia and other regions.

The transaction allows Carrier to focus on its core business, while giving the 200-year-old Chubb business a greater chance to pursue new opportunities, said Carrier CEO Dave Gitlin in the release. "We look forward to seeing the growth potential Chubb will have under the ownership of APi Group."

APi's shares closed Tuesday at $22.26, up more than 9%.