IR spin off gives focus to Trane and Thermo King
USA/IRELAND: Ingersoll Rand will focus on its Trane and Thermo King air conditioning, refrigeration and heating brands following the decision to spin off its Industrial business to Gardner Denver.
The agreement announced today will see Ingersoll Rand’s air compressor, pumps, and fluid and materials handling systems business merge with US industrial equipment company Gardner Denver.
Michael W Lamach, Ingersoll Rand’s chairman and CEO, along with the current Ingersoll Rand executive team, will continue to lead the climate solutions business, which is expected to be renamed. The climate solutions business will also receive $1.9bn in cash from Ingersoll Rand Industrial that will be funded by newly-issued debt assumed by Gardner Denver in the merger.
“As a pure play global leader in the climate control solutions markets, we will leverage our leading brands, outstanding sales and service channels and our proven business operating system to capitalise on global sustainability megatrends that play directly to our strengths: reducing energy demand and greenhouse gas emissions and improving efficiency in buildings, homes and transportation,” said Lamach. “With greater focus, more targeted investments and a simplified business model, we believe our new company will continue to drive above GDP growth and deliver value for shareholders, customers and employees.”