With the acquisition of Piscataway, New Jersey-based Trane, formerly known as American Standard, Ingersoll-Rand said it expects its climate control business to generate $11 billion in revenue in 2008.
"Our climate control business is a global marketplace," Henkel told CNBC. "What we see at this point in time is more than 35 percent of our revenues coming from outside the U.S., but tremendous upside."
The deal, which has been approved by both companies' boards of directors, is expected to generate $300 million in pre-tax cost and revenue synergies by 2010, the companies said.
"Strategically the deal is sound," wrote Deutsche Bank analyst Nigel Coe, in a note to clients. "IR is one of the world's largest manufacturers of refrigeration and air solutions, although it currently has limited presence in the air conditioning world."
Ingersoll is incorporated in Hamilton, Bermuda, but maintains administrative headquarters in New Jersey.
The companies expect the deal to close late in the first quarter of 2008 or early in the second quarter following shareholder and regulatory approval.
CNBC.com contributed to this article.