Viessmann Group takes next step as an independent family business with new setup

Apr 25, 2023

• New transatlantic partnership builds foundation for further growth and underlines the importance of international collaboration in the fight against global climate change
• Viessmann Group’s business area ‘Climate Solutions’ to become a major driver of Carrier’s growth strategy in Europe
• Viessmann Group becomes one of the largest shareholders in Carrier
• Viessmann Group CEO Max Viessmann becomes member of the Board of Directors of Carrier
• New setup allows Viessmann Group to maximize and scale its purpose of co-creating living spaces for generations to come
• Viessmann Group will reinvest the primary proceeds from the combination with Carrier to expand its entrepreneurial activities with a focus on CO2 avoidance, CO2 reduction and CO2 capturing, beyond the HVAC sector 

Allendorf/Eder (Germany) – The Viessmann Group today announced plans to combine its business area ‘Viessmann Climate Solutions’ with Carrier Global Corporation (“Carrier”), a leading global provider of intelligent climate and energy solutions with headquarters in Palm Beach Gardens, Florida (USA). With this step, Viessmann Group’s business area Climate Solutions and Carrier will be co-creating a new global champion for climate and energy solutions.

The new transatlantic partnership underlines the importance of international, cross-border collaboration in the fight against global climate change. Both companies are fully committed to take more responsibility for a sustainable energy transition in the building sector, focusing on their purposes: Viessmann Group’s purpose is to co-create living spaces for generations to come. Carrier’s vision is to create solutions that matter for people and our planet. Both companies regard the climate goals in North America and Europe as a once-in-a-century opportunity to make a positive impact, by actively shaping sustainable climate and energy solutions for future generations.

Viessmann Group Chairman of the Board of Directors Prof. Dr. Martin Viessmann: “Strong partnerships have always been fundamental to the success of our family business in the past 106 years. And Carrier is a strong partner for our Climate Solutions business. By joining forces, we will be able to uplift our impact on the decarbonization of the building sector to the next level with more reach and scale globally – for our family members and for our partners and most importantly for more climate protection.“

Viessmann Group CEO Max Viessmann: “The world’s energy transition can only be managed successfully if companies think, act and collaborate on a global level. Building on our very positive growth momentum and a market-leading integrated solutions offering, we are combining our Climate Solutions business area with Carrier to build the next future-proof, truly global, climate champion. Through the combination of both companies, we are forming a fast-growing innovation leader in a highly competitive market environment – from a position of strength. This partnership lays the perfect basis to jointly capture growth opportunities and maximize our impact for generations to come.”

Carrier CEO David L. Gitlin: “Viessmann Group’s business area ‘Climate Solutions’ is an outstanding business with a superior market position, unmatched distribution channels and huge growth opportunities. Its success is based on its superb workforce which has a strong value-driven culture and its game-changing integrated solutions offering. Martin and Max have built Europe’s most recognized premium climate solutions brand and Carrier is fully committed to further building on that growth momentum. We are thrilled to co-create the future of the intelligent climate and energy solutions industry together.”

Combining its Climate Solutions business with Carrier will bring multiple benefits:

1. Continued commitment by the Viessmann Group: The family business will become one of the largest shareholders in Carrier, upon closing. Consequently, Viessmann Group CEO Max Viessmann will become a new member of the Board of Directors of Carrier. These steps will secure a strong involvement of the entrepreneurial founding family with clear focus on long-term growth.

2. Further growth through more scale and reach: Carrier Group’s HVAC division is in a market leading position in the residential and commercial segment in North America as well as in the commercial segment in Europe. Viessmann Group’s Climate Solutions business is a market leader in Europe’s premium residential segment. Consequently, the combination of both companies will become an unprecedented market leader in both residential and commercial segments in both North America and Europe. Additionally, Carrier has a strong footprint in Asia via its local brand Toshiba Carrier Corporation. As a new global champion in intelligent climate and energy solutions company globally, Carrier and Viessmann Climate Solutions will generate a total revenue of more than US$ 17 billion with about 45000 employees – a strong setup to outperform competition all across the globe.

3. Leadership in Europe: Following the closing of the transaction, which is expected by the end of the year, Viessmann Climate Solutions, led by CEO Thomas Heim, will become a major driver of Carrier’s growth strategy for the residential and light commercial HVAC business in Europe. Its headquarters will remain in Allendorf, Germany.

4. Broader integrated climate solutions offering: Customers and installation partners of both companies will significantly benefit from a wider product range as well as after-sales-services, digital and value-added solutions. They will also profit from higher production capacities and reduced delivery times for renewable energy solutions including a broader bandwidth of heat pumps, battery storages, photovoltaics and ventilation solutions.

5. Progress with continuity: Both parties have agreed on long-term guarantees: Refraining from terminations for operational reasons (3 years), site guarantees for all main manufacturing and R&D locations (5 years) as well as the headquarters in Allendorf (10 years). Moreover, the guarantees will secure the long-term future of the business area, leveraging global scale for procurement, logistics, manufacturing, supply chain, product development, sales and services.

The new partnership between Viessmann Climate Solutions and Carrier is a partnership of the century. The entrepreneurial family recognizes the team effort by all family members, upon the successful closing of the new partnership: A sum of EUR 106 million for 106 years of success will be distributed as a one-time bonus for all Climate Solutions employees.

All Viessmann Group activities outside the Climate Solutions business area are not affected by the transaction.

Viessmann Group remains independent family business

The Viessmann Group will continue to remain an independent family business in full ownership of the Viessmann entrepreneurial family. It will continue its entrepreneurial activities following its purpose of co-creating living spaces for generations to come. Going forward, it will be building an ecosystem that will focus on CO2 avoidance, CO2 reduction and CO2 capturing, beyond the HVAC sector. The Viessmann family will reinvest the primary proceeds from the combination with Carrier into the Viessmann Group, but also a significant amount allocated to its philanthropic activities. Moreover, the family business will retain full ownership of its iconic brand. While Carrier will license and grow the Viessmann brand in the HVAC industry, the Viessmann Group will expand its brand reach into other sectors. It will also maintain a close collaboration with Carrier across company boundaries at the operational level.

Today, the Viessmann Group – excluding its Climate Solutions business area – generates a total revenue of EUR 1 billion in sales – including non-consolidated entities – with around 4000 employees. Looking ahead, the clear goal and ambition of the Viessmann Group is to grow to a size that is larger than the Climate Solutions business area today, latest by the end of the decade.

Viessmann Group Chairman of the Board of Directors Prof. Dr. Martin Viessmann: “We are taking the next step in the history of our family business by moving beyond heating solutions towards an ecosystem of strong co-creators who take responsibility for future generations by fostering solutions in all facets of sustainable clean energy. We are creating the best conditions to fulfill our purpose by combining the best of two worlds: A broadly positioned Viessmann Group and a global partnership with Carrier for the Climate Solutions business area.”

Viessmann Group CEO Max Viessmann: “Global climate change is progressing quickly and our 1.5 degree climate goal is getting out of reach. As a solution-oriented family company, we see our responsibility in making more positive contributions against the negative trend of climate change – above and beyond the HVAC sector. Therefore, we will support, foster and focus on all aspects, solutions and technologies that avoid, reduce or capture CO2 emissions. On this journey, we will align everything we do along our purpose of co-creating living spaces for generations to come. Following this ambition, we will also handover a family business to the next generations that is stronger, broader and more diverse than ever before.”

About Viessmann

The family company Viessmann was founded in 1917 as a local garage for heating technology. Today, it has become a global, broadly diversified Group with over 14500 family members and a total revenue of over 4 billion euros. The Climate Solutions and Refrigeration Solutions business areas include sustainable solutions in heating, cooling, water and air quality. Under Viessmann Investment, the Group bundles all strategic partnerships and investments in mid-sized companies. The diversification unit VC/O manages all venture capital investments in early-stage technologies, including Maschinenraum as a growing ecosystem for family companies. The development and operations of sustainable buildings are led by the diversification area Real Estate. The Viessmann Foundation coordinates all social commitments and represents the social responsibility of the family business. All activities are based on the company’s purpose "We create living spaces for generations to come". This is the responsibility that the large Viessmann family faces every day.

Press Contact:
Byung-Hun Park
Vice President Corporate Communications
E-mail: huni@viessmann.com
Ph: +49151-64911317