Midea of China to Acquire Stake in Carrier’s Air-conditioning Operations in Egypt

April 29, 2010

FARMINGTON, Conn., United States

GD Midea Holding Co. Ltd. has signed an agreement to acquire a 32.5 percent stake in Misr Air Conditioning Manufacturing Company (Miraco). Midea is a leading residential air-conditioning manufacturer in the world. Miraco, a publicly traded manufacturer and distributor of primarily residential air-conditioning products in Egypt and Africa, is majority-owned by Carrier Corp., a unit of United Technologies Corp. (NYSE:UTX).

Miraco is the leading Egyptian manufacturer and distributor of residential and commercial air-conditioning products with 2009 sales of approximately $200 million and 1,000 employees. It has its headquarters and a manufacturing facility outside of Cairo, Egypt.

Carrier currently owns 69.6 percent of the outstanding shares in the company. Under this agreement, Midea will acquire from Carrier 32.5 percent of the shares in Miraco for $57 million.

Geraud Darnis, president of Carrier Corp., said, “This transaction will strengthen Miraco’s operations and further enhance its growth profile through an infusion of new products, opening of additional export opportunities in the region and new investment in Miraco’s manufacturing facilities in Egypt.”

“This is a significant investment in Egypt by Midea Group. We look forward to increasing our business in Egypt and in the region,” said Midea Group Chairman He Xiangjian. Midea Group is the parent company of GD Midea Holding Co. Ltd.

Fang Hongbo, Chairman of GD Midea Holding, said, “Carrier’s leadership position and unparalleled distribution channels in Egypt combined with Midea’s residential product range and manufacturing expertise provide a strong platform for future growth of Miraco in Egypt and Africa.”

The transaction is subject to further due diligence and is expected to close within 90 days subject to approval from Chinese regulatory authorities as well as satisfaction of relevant Egyptian regulations.

About Carrier Corp.
Carrier Corp., headquartered in Farmington, Conn., is the world’s largest provider of heating, air-conditioning and refrigeration solutions, with operations in more than 170 countries. Carrier is part of United Technologies Corp., a Hartford, Connecticut-based provider of products and services to the aerospace and building systems industries worldwide.

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