Ingersoll-Rand to acquire Trane
Ingersoll-Rand to acquire Trane
0 Comments | Winnipeg Free Press, Dec 18, 2007
TRENTON, N.J. — In a deal worth US$10 billion, Ingersoll-Rand Co. will acquire Trane Inc. and create one of the world’s largest makers of commercial and residential home air conditioners, refrigerators for trucks and stores, and other climate control products.
But some Ingersoll-Rand shareholders, who had expected the cash-rich company to pour some money into share repurchases, seemed disappointed with the acquisition announced Monday and sold Ingersoll-Rand stock, driving shares down sharply.
The $10.1 billion cash and stock deal — one of the largest industrial buyouts in recent years — gives Ingersoll-Rand, which makes Thermo King refrigerated trucks and Hussmann refrigerated display cases, access to Trane’s building and transportation cooling systems.
“What they bought in Trane is a premier position in climate control,” with $11 billion in annual revenues, said industrial manufacturing analyst Eli Lustgarten of Longbow Securities.
That will be nearly two-thirds of the combined company’s expected 2008 revenues of $17 billion.
Lustgarten noted that will make the combined company No
trane air conditioners