APi Group to buy Chubb Fire & Security unit from Carrier for $2.9 billion

(Reuters) -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.

Reporting by Abhijith Ganapavaram in Bengaluru