Ingersoll-Rand confirmed on Monday that it is to spin off its security technology business and announced a $2 billion share buyback.
The security technology unit, which makes locks and steel door frames, represents the smallest of Ingersoll-Rand's business segments, with roughly $1.5 billion in sales for the last four quarters.
In conjunction with the spin-off and share buyback, the company, whose main business is heating and cooling systems, also raised its quarterly dividend to 21 cents per share.
Dublin-based Ingersoll-Rand has weathered years of choppy earnings as the housing recovery failed to pick up steam and generate demand for its products. Activist firm Trian Partners bought a roughly 7 percent share in the conglomerate in May, and its chief Nelson Peltz was named to the board in August.