Posted By Rich Miller On December 17, 2007 @ 7:21 am In Cooling | Comments Disabled
Trane, a major manufacturer of industrial chillers and HVAC equipment used in data center cooling systems, has agreed to be acquired by Ingersoll-Rand for $10.1 billion, the companies said today. Ingersoll-Rand will pay $36.50 in cash and 0.23 of a share, valuing Trane at $47.81 based on Friday’s closing price. That’s a 29 percent premium to Trane’s stock price.
Ingersoll-Rand will use the Trane purchase to focus on developing heating and cooling systems for vehicles as well as buildings. Continued growth in office and shop construction in the U.S. has buoyed sales for Trane, which makes two-thirds of its revenue from commercial construction.
“Combining Trane and Ingersoll Rand’s climate control operation creates a very strong business,” Fred Poses, Trane chairman and CEO, said in a press release (PDF)  announcing the deal. “With the size, strength and operational effectiveness of a $17 billion global industrial company, we believe this combination is best for our customers, employees and shareowners in the long term.”
Herbert L. Henkel, Ingersoll Rand chairman, president and chief executive officer, said the growing corporate focus on energy-efficiency and green buildings will boost demand for Trane products. “Based upon market fundamentals such as rising energy costs and conservation initiatives, we expect solid replacement-demand for energy-efficient products and for retrofit and refurbishment of current systems,” said Henkel. “Trane’s large installed base of equipment and systems will provide profitable aftermarket growth potential. Also, Trane has the leading market position in North America, and is growing strongly and increasing penetration in international markets.”
Henkel also said Ingersoll-Rand expected to benefit from “revenue and cost synergies” as the companies’ operations are integrated.
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URL to article: http://www.datacenterknowledge.com/archives/2007/12/17/chiller-maker-trane-acquired-for-10-billion/
URLs in this post:
 acquired by Ingersoll-Rand : http://www.bloomberg.com/apps/news?pid=20601087&sid=apvMrEFgRK_o&refer=home
 press release (PDF): http://www.trane.com/Corporate/IR2007/resources/IR_Trane_Final.pdf
 Rich Miller: http://www.datacenterknowledge.com/archives/author/richm/
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