Ingersoll Rand announced July 30 an agreement to sell its Bobcat, Utility Equipment and Attachments business units to Doosan Infracore for cash proceeds of approximately $4.9 billion. The company expects the sale to close early in the 2007 fourth quarter.
The combined businesses manufacture and sell compact equipment, including skid-steer loaders, compact track loaders, compact excavators and telescopic tool handlers; portable air compressors, generators, and light towers and general-purpose light construction equipment and attachments. For full-year 2006 the businesses collectively generated approximately $2.6 billion in revenues.
The sale includes manufacturing facilities in Gwinner and Bismarck, North Dakota; Carrollton, Georgia; Litchfield, Minnesota; Petersburg, Virginia; Wujiang, China; Dobris, Czech Republic; Lyon and Pontchateau, France; Slane, Ireland and Tredegar, Wales. The businesses employ approximately 5,700 people worldwide.
“The sale of Bobcat, Utility Equipment and Attachments represents the last major action to transform our business portfolio to reposition Ingersoll Rand as a diversified industrial company,” says Herbert L. Henkel, chairman, president and chief executive officer. “We are pleased that the Bobcat, Utility Equipment and Attachments businesses will join a major global organization intent on expanding its participation across worldwide construction and related markets. These businesses complement Doosan’s existing product line, extend its presence in key geographic regions and provide Doosan core business platforms upon which to grow.”
Henkel says this transaction and the recent sale of the Road Development business in April will generate gross proceeds of more than $6.2 billion.