Ingersoll-Rand Co. Ltd. purchased Trane, formerly American Standard, in a transaction valued at approximately $10.1 billion. Under terms of this agreement, which has been approved by both companies’ boards of directors, Ingersoll-Rand will acquire all of Trane’s outstanding common stock. The transaction is expected to be complete by the end of the first quarter or beginning of the second quarter in 2008.
According to Ingersoll-Rand, “This was a major step in the company’s decade-long transformation.”
In spite of the wave of recent changes, Trane is still operating business as usual. Trane Chairman and CEO Fred Poses will remain in his position until the acquisition is completed, and there has been no mention yet of a name change.
“As far as our business goes, our focus continues to be on supporting both of our premium brands and meeting or exceeding the expectations of our customers,” said Dave Pannier, president of Trane Residential Systems. “In that regard, nothing changes … it’s business as usual at Trane.
“I’m excited about the expanded opportunities that joining Ingersoll-Rand presents to our business,” he continued. “With their position as a progressive, global, and technology-driven business, it’s evident to me that Trane is a good fit for them, and I believe that they’re a good fit for us.”
Trane’s common shareholders will receive a combination of $36.50 in cash per share and 0.23 Ingersoll-Rand shares of common stock per each Trane share. This totals to approximately $48 per share.
“For our shareowners, this offer represents an attractive price for our shares today and the opportunity to participate in a powerful global diversified industrial company in the future,” said Poses.
- Angela Harris