Ingersoll Rand Co. has agreed to sell its Bobcat, Utility Equipment and attachments business units to Doosan Infracore for cash proceeds of approximately $4.9 billion. The sale is subject to customary closing conditions and is targeted to close early in the 2007 fourth quarter.
The combined businesses manufacture and sell compact equipment, including
skid-steer loaders, compact track loaders, mini-excavators and telescopic tool
handlers; portable air compressors, generators, and light towers;
general-purpose light construction equipment; and attachments. For full-year 2006 these businesses
collectively generated approximately $2.6 billion in revenues. The sale
includes manufacturing facilities in Gwinner and Bismarck, N. D.; Carrollton,
Ga.; Litchfield, Minn.; Petersburg, Va.; Wujiang, China; Dobris, Czech
Republic; Lyon and Pontchateau, France; Slane, Ireland; and Tredegar, Wales.
The businesses employ approximately 5,700 people worldwide.
“The sale of Bobcat, Utility Equipment and Attachments represents the last
major action to transform our business portfolio to reposition Ingersoll Rand
as a diversified industrial company,” says Herbert Henkel, chairman, president
and chief executive officer. “We remain focused on driving growth and creating
shareholder value through three strategic platforms serving global climate
control, industrial and security markets. I am confident that these businesses
will deliver consistent financial performance over the long term and across all
phases of the economic cycle.
“The transaction reflects a fair price that recognizes the value of the
businesses’ assets, including people, manufacturing facilities, channels and
market-leading brands. We are pleased that the Bobcat, Utility Equipment and
Attachments businesses will join a major global organization intent on
expanding its participation across worldwide construction and related markets.
These businesses complement Doosan’s existing product line, extend its presence
in key geographic regions – especially North
America and Europe – and provide Doosan
core business platforms upon which to grow. At the same time, Doosan’s strong
position in Asia Pacific markets will provide the acquired businesses
significant growth opportunities. The future of these businesses remains sound
as strategically important operating units of Doosan.
“Collectively, this transaction and the
recent sale of our Road Development business in April 2007 will generate gross
proceeds of more than $6.2 billion. As a result, we have created immediate
value for our shareholders and unlocked significant capital to drive long-term
growth. We will use the proceeds of the sale to make acquisitions that enhance
the geographic reach, product lines, and manufacturing capabilities of our
strategic business platforms, and we will augment organic growth by funding
innovation and new product efforts. In addition, we will continue to implement
our previously authorized share repurchase program.”