) recently entered into an agreement to acquire the Centrifugal
Compression division of Cameron International Corp. (
) for $850 million. The acquisition is expected to be funded by a
mix of debt and cash and close by the end of this year.
Ingersoll Rand's compressed air systems and services business
provides a wide range of centrifugal, reciprocating and rotary air
compressor products and this acquisition will further expand its
existing portfolio. Post acquisition, the Turbo-Air and MSG brands
of Cameron International's Centrifugal Compression division will be
added to Ingersoll Rand's lineup and boost its compression unit
The products are likely to expand Ingersoll Rand's industrial
segment into areas such as air separation, petrochemical, chemical,
and process gas and fast-growing power generation applications.
This transaction is expected to be accretive to Ingersoll Rand
earnings per share (EPS), earnings before interest, taxes
depreciation and amortization (EBITDA) margins and return on
invested capital (ROIC) in 2015.
Headquartered in Dublin, Ireland, Ingersoll Rand designs,
manufactures, sells and services a diverse portfolio of industrial
and commercial products across the globe. The company has a solid
foundation of global brands and has leading market share in all
major product lines. The geographic and industrial diversity
coupled with a large installed product base provides ample growth
opportunities for the company within service, spare parts and
replacement revenue streams.
Ingersoll Rand currently has a Zacks Rank #2 (Buy). Other stocks
that look promising and are worth considering in the industry
include Blount International Inc (
), carrying a Zacks Rank #1 (Strong Buy) and Middleby Corp. (
), carrying a Zacks Rank #2 (Buy).
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