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Ingersoll-Rand Agrees To Acquire Trane

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By LINDA A. JOHNSON, The Associated Press

Published: December 18, 2007

TRENTON, N.J. - Ingersoll-Rand Co. will acquire Trane Inc. in a $10.1 billion deal that would create one of the world's largest makers of air conditioners, the companies announced Monday.

The deal - one of the largest industrial buyouts in recent years - gives Ingersoll-Rand, which makes Thermo King refrigerated trucks, access to Trane's building and transportation cooling systems.

"This acquisition represents a significant next step in Ingersoll-Rand's decadelong transformation to become a leading global diversified industrial company, with strong market positions across the climate control, industrial and security markets," said Chief Executive Officer Herbert Henkel.

Bermuda-based Ingersoll-Rand has an operational headquarters in Woodcliff Lake, N.J. The company's manufactured goods include golf carts and home security products, and it and has a significant climate control business.

Piscataway, N.J.-based Trane, formerly known as American Standard Cos. Inc., focuses its business almost exclusively on residential and commercial climate control.

Combining the climate control operations of Trane and Ingersoll-Rand "creates a very strong business," said Fred Poses, Trane chairman and CEO.

The combined company is expected to have 2008 revenues of $17 billion, slightly more than double the current revenue for each.

Under the terms of the agreement, Trane shareholders will receive a cash-and-stock trade: Ingersoll-Rand agreed to pay the shareholders $36.50 plus 0.23 of its shares for each Trane share.

That equates to about $47.81 per Trane share, nearly a 30 percent premium over Trane's Friday closing price.

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