Ingersoll-Rand Co Ltd has executed a definitive agreement to acquire Trane Inc, formerly American Standard Companies Inc, in a transaction valued at approximately $10.1 billion. The deal includes transaction fees and the assumption of about $150 million of Trane net debt.
This transaction provides Ingersoll-Rand, which manufactures Thermo King refrigeration systems, access to Trane’s building and transportation cooling systems. Piscataway NJ-based Trane is a global leader in indoor climate control systems and services, with expected 2007 revenues of $7.4 billion.
The combined firms are anticipated to have 2008 revenues of $17 billion, said Herbert L Henkel, chairman, president, and chief executive oficer of Ingersoll-Rand.
Under the terms of the agreement, Ingersoll-Rand will acquire all outstanding common stock of Trane. Holders of Trane’s roughly 200 million common shares will receive a combination of $36.50 in cash and 0.23 Ingersoll-Rand shares of common stock per each Trane share. Total value for this transaction is $47.81 per Trane share based on the closing price Dec 14, 2007. The transaction which is expected to close late in the first quarter or early in the second quarter of 2008, is subject to approval by Trane shareholders, regulatory approvals, and customary closing conditions.
Trane has more than 29,000 employees and 29 production facilities worldwide.