Ingersoll-Rand to buy Trane for about $10.1 bln
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Mon, 17 Dec 2007 06:28:01 GMT |
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NEW YORK (Reuters) - Diversified manufacturer Ingersoll-Rand Co Ltd on Monday said it agreed to acquire Trane Inc , an indoor heating and air conditioning systems maker, for about $10.1 billion in cash and stock to expand its climate control business.Under the terms of the deal, Ingersoll agreed to pay a total of about $47.81 per share for Trane, with $36.50 per share to be paid in cash and the remainder to be paid in 0.23 share of Ingersoll-Rand stock.The combined companies expect to earn $4 per share in 2008, Ingersoll-Rand chief executive Herbert Henkel said in a statement.The deal, which has received approval from both companies' boards of directors, is expected to generate $300 million in pre-tax cost and revenue synergies by 2010, the companies said.Ingersoll-Rand expects its combined climate control operations will have revenues of about $11 billion in 2008.Also, under the deal Ingersoll-Rand will assume about $150 million of Trane's net debt.The companies expect the deal to close late in the first quarter of 2008 or early in the second quarter following shareholder and regulatory approval.Trane shares closed at $37.20 on the New York Stock Exchange on Friday, while shares of Ingersoll-Rand closed at$49.18.(Reporting by Emily Chasan; Editing by Paul Bolding)
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