Trane purchased in deal with Ingersoll Rand
Truck refrigeration company Ingersoll Rand has announced it will acquire HVAC company Trane, formerly American Standard.
The transaction is valued at $10.1 billion, including fees and the assumption of approximately $150 million of net debt.
“Combining Trane and Ingersoll Rand's climate control operation creates a very strong business,” said Fred Poses, Trane’s chairman and CEO. Poses will remain in his position until the completion of the acquisition, the companies said in a joint statement.
American Standard spun off its divisions this year, starting with its vehicle control systems business.
In October, investment firm Bain Capital Partners received a green light in its buyout of the bath and kitchen products business of American Standard. The investment firm purchased the American Standard assets for $1.76 billion. The purchase was cleared this week by the European Union’s merger review commission.
Ingersoll’s purchase agreement for Trane’s approximately 200 million common shares was valued at $36.50 per share.
The company said the transaction will create a global diversified industrial company with expected 2008 revenues of $17 billion.