Business News

Gardner Denver to merge with Ingersoll-Rand division: WSJ

Key Points
  • Gardner Denver is nearing a deal to merge with a division of Ingersoll-Rand.
  • The combination would create a business that would have an enterprise value, including debt, of about $15 billion.
  • The deal, which could be announced as soon as this week, would involve a mixture of cash and stock for Ingersoll shareholders.

Industrial machinery maker Gardner Denver is nearing a deal to merge with a division of Ingersoll-Rand  creating a business that would have an enterprise value, including debt, of about $15 billion, The Wall Street Journal reported on Sunday.

The deal, which could be announced as soon as this week, would involve a mixture of cash and stock for Ingersoll shareholders, the WSJ said, citing sources.

The deal would be structured as a so-called Reverse Morris Trust, a tax-efficient way for companies to sell off a division, and Ingersoll shareholders are expected to own just over half of the new company.

Gardner Denver Chief Executive Vicente Reynal would lead the merged company, the newspaper said.

Gardner Denver, part-owned by private-equity firm KKR & Co Inc, did not immediately respond to a request for comment. Ingersoll-Rand declined to comment on the deal.

Ingersoll's climate segment, which includes its heating, ventilation and air- and temperature-controlled transport businesses, would not be part of the deal, the WSJ said.