Ingersoll Rand to spin off security unit
Ingersoll Rand has announced a plan to spin off its commercial and residential security businesses into a standalone company. The new security business will provide electronic and mechanical security products and services, delivering comprehensive solutions to commercial and residential customers. Ingersoll Rand expects the spinoff, which is intended to be tax-free to shareholders, to be completed in approximately 12 months.
Ingersoll Rand, as a separate company, will continue to offer its portfolio of products. It will serve customers globally through a number of leading brands, including Ingersoll Rand, Trane, American Standard, Ameristar, Thermo King, Aro and Club Car.
“Given the distinct strengths and strategies of the two proposed companies, [our] board believes that this structure will enable investors to value our different businesses separately, creating value for both companies and their shareholders,” said Michael Lamach, Ingersoll Rand’s chairman and CEO. “We believe the spinoff, which is the result of an in-depth review of strategic alternatives by our board and management, will allow both companies to enhance value by allocating capital and deploying resources in a more focused way, while preserving and increasing synergies within their businesses. At the same time, it will position the new security company to build scale and make the necessary investments for the future.”
Lamach will continue after the spinoff to serve in his current role as Ingersoll Rand’s chairman and chief executive officer.