Industrial goods manufacturer
) has set Dec 1, 2013 as the record and distribution date for the
spin-off of its commercial and residential security businesses
into a separate standalone company named Allegion plc. Following
the spin-off, Allegion will trade on the New York Stock Exchange
under the ticker name ALLE and Ingersoll will not have any
ownership in the new entity.
On Dec 1, 2013, each Ingersoll shareholder will receive one
Allegion share for every three Ingersoll shares held at the close
of business on the record date of Nov 22, 2013. The fractional
shares will be sold in the open market, proceeds of which will be
distributed to those who are entitled to receive the Allegion
As part of this spin-off, Ingersoll has also realigned its
financial reporting structure into two segments, namely Climate
and Industrial, which is effective from fourth quarter results.
Earlier, the company had four reportable segments, namely Climate
Solutions, Residential Solutions, Industrial Technologies and
Security Technologies, each commanding a leading position in the
While the Industrial segment remains unchanged, the Climate
segment will include all of commercial and residential heating
ventilation and air conditioning (HVAC) and transport solutions
With this realignment, Ingersoll expects to incur a charge of
approximately 15 cents to 20 cents per share within the next two
quarters. The restructuring initiative is aimed to provide
greater focus on growth, continued implementation of business
operating system and reduce complexity and overhead cost, thereby
improving the long-term growth prospects and higher margin
Headquartered in Dublin, Ireland, Ingersoll-Rand Plc designs,
manufactures, sells and services a diverse portfolio of
industrial and commercial products across the globe. From
enhancing the quality and comfort of air in homes and buildings
to transporting and protecting food and perishables, the product
portfolio of the company secures homes and commercial properties
and increases industrial productivity and efficiency.
Ingersoll currently carries a Zacks Rank #3 (Hold). Other stocks
that are worth a look in the industry include
DXP Enterprises, Inc
The Middleby Corp.
), each carrying a Zacks Rank #2 (Buy).
DXP ENTERPRISES (DXPE): Free Stock Analysis
FLOWSERVE CORP (FLS): Free Stock Analysis
INGERSOLL RAND (IR): Free Stock Analysis
MIDDLEBY CORP (MIDD): Free Stock Analysis
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