Newsline

American Standard Plans Changes

February 12, 2007
/ Print / Reprints /
ShareMore
/ Text Size+

PISCATAWAY, N.J. - After completing a strategic review of the company, American Standard Companies Inc.’s board of directors unanimously approved a plan to separate its three businesses this year.

“The board has concluded that separating American Standard into three focused, better understood companies will create greater share-owner value than the current structure,” said Fred Poses, chairman and CEO. “The businesses have the size, global reach, industry leadership, and organizational talent to succeed as separate companies.”

Upon completion of the plan, American Standard will focus on its global market air conditioning systems and services business, changing the company’s name to Trane, its flagship air conditioning brand. The company plans to spin off its global vehicle control systems business as an independent, publicly traded company, expected to be known as WABCO.

In addition, American Standard plans to sell off the Bath and Kitchen business. The company expects to complete both the spinoff of WABCO and the sale of Bath and Kitchen by early fall of this year. “Looking to the future, our board concluded that the separation plan is the best way to enhance shareowner value,” said Poses. “Operating separately, the businesses will benefit from greater strategic focus, increased market recognition, improved capital flexibility, and an increased ability to attract, retain, and motivate employees.”

Trane’s headquarters will remain in Piscataway, N.J., and the company will continue to trade on the New York Stock Exchange (NYSE) using a new stock symbol to be announced later. The company will retain the right to use the American Standard brand name for its HVAC products. Completion of the proposed separation is subject to final approval by American Standard Companies’ board of directors.

When implemented, the separation plan will not trigger “change-in-control” accelerated benefits for any officers or employees of the company.

Poses will continue as chairman and CEO through 2007 as planned, and an internal and external search is under way for his successor. The current directors of American Standard Companies, with the exception of lead director Jim Hardymon, are expected to continue as board members of the company when it changes its name to Trane. Hardymon, in accordance with the company’s governance guidelines, will retire from the board in May 2007, and will serve as WABCO’s nonexecutive chairman. Leaders of Air Conditioning Systems and Services, Craig Kissel, president of commercial systems, and Dave Pannier, president of residential systems, will continue in their roles.

Publication date: 02/12/2007

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 MCAA Annual Convention

Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.

Podcasts

NEWSmakers: Julian Scadden

Training is an ongoing process. Julian will discuss how you can generate maximum return on time and energy invested training by following a three part process. Listen to this podcast to get expert tips on training, tracking and follow up. 

More Podcasts

THE MAGAZINE

ACHRNEWS

NEWS 04-14-14 cover

2014 April 14

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

SERVICE CALLS POLL

Which statement on service calls best applies to your business?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con