April 30, 2019 / 10:32 AM / 4 months ago

Ingersoll-Rand to spin off industrial unit and merge it with Gardner Denver

(Reuters) - Ingersoll-Rand Plc said on Tuesday it would spin off its industrial business and merge it with industrial pumps and compressors producer Gardner Denver Holdings Inc, creating a company valued at about $15 billion.

The move would allow Ingersoll to focus on its larger, higher-margin business that makes Trane and Thermo King brand of heating, air conditioning and transport refrigeration systems.

The combined company would have a 2019 pro forma revenue of about $6.6 billion, Ingersoll said.

Existing Ingersoll-Rand shareholders will receive 50.1 percent of the shares of the newly formed company, valued at $5.8 billion.

Ingersoll’s industrial business, which makes products including industrial pumps and power tools, when combined with Gardner Denver, would have a 2019 pro forma revenue of about $6.6 billion, the companies said.

The remaining climate business, which will be renamed with a new stock ticker, will receive $1.9 billion in cash. The business is expected to have a pro forma revenue of about $12.9 billion.

Reporting by Ankit Ajmera in Bengaluru; Editing by Shailesh Kuber

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