Posted April 30, 2019

Gardner Denver to combine with Ingersoll Rand industrial segment

Gardner Denver Holdings Inc. and Ingersoll-Rand plc have entered into an agreement whereby IR will spin off its industrial segment and combine it with Gardner Denver.

The new company, to be called Ingersoll Rand, will be composed of the entirety of Gardner Denver and Ingersoll Rand Industrial, including Ingersoll Rand’s pending acquisition of Precision Flow Systems, which is expected to close by mid-2019. The company will have combined revenue of approximately $6.6 billion.

The HVAC and transport refrigeration assets of the current Ingersoll Rand will become a pure play global leader in climate control solutions for buildings, homes and transportation.

Gardner Denver’s CEO, Vicente Reynal, and executives from both companies, will lead the new company, which will trade under Ingersoll Rand’s existing ticker (NYSE: IR).

Michael W. Lamach  Ingersoll Rand’s chairman and CEO, along with the current Ingersoll Rand executive team, will continue to lead ClimateCo, which is expected to be renamed.

Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of Ingersoll Rand and Gardner Denver, at the time of close, ClimateCo will receive $1.9 billion in cash from Ingersoll Rand Industrial that will be funded by newly-issued debt assumed by Gardner Denver in the merger.

“This transaction will create a global leader in mission-critical flow creation and industrial technologies, and accelerate both companies’ strategic priorities of deploying talent, driving growth, expanding margins through increased efficiencies and allocating capital effectively,” said Vicente Reynal. “Gardner Denver and Ingersoll Rand’s Industrial business have a combined history of over 300 years, and are both renowned for our commitment to operational excellence, innovation and quality.”