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News Breaks
August 18, 2014
12:19 EDTCAM, IRIngersoll-Rand rises after agreeing to buy Cameron unit for $850M
Shares of Ingersoll-Rand (IR), which makes heating and air conditioning systems, are up after it announced an agreement to acquire the assets of Cameron International Corporation's (CAM) Centrifugal Compression division for $850M. WHAT'S NEW: Ingersoll-Rand this morning entered into an agreement to acquire Cameron's Centrifugal Compression division for $850M. The acquisition is expected to close before the end of the year, subject to regulatory approval. The Cameron unit generated sales of approximately $400M in 2013, has approximately 850 employees and operates from 12 global locations. The results of operations of the Centrifugal Compression business will be reported as discontinued operations for Cameron beginning in the third quarter. Ingersoll Rand plans to fund the acquisition through a combination of cash on hand and debt. WHAT'S NOTABLE: Ingersoll-Rand said it expects the acquisition to be accretive to EBITDA margins, EPS, and ROIC in 2015 and beyond. The company expects the acquisition to add 8c-10c per share to its earnings in 2015. The company anticipates moderate incremental debt, supported by additional earnings from Cameron and core earnings growth. Ingersoll adds that it foresees refinancing of $500M of 2015 debt, and continues to expect a 2014 share repurchase of $1.38B. Cameron said it is selling the unit to focus on its core markets. The company expects after-tax proceeds of about $600M from the sale, part of which it planned to use to support share buybacks. ANALYST REACTION: Following the announcement, Wells Fargo analysts estimated that the acquisition will be approximately 10c-15c accretive excluding impact from synergies and approximately 20c-25c with anticipated synergies. PRICE ACTION: Ingersoll-Rand jumped $1.49, or 2.46%, to $62.03 in intra-day trading, while Cameron is trading down 0.6% to $72.21.
News For IR;CAM From The Last 14 Days
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December 19, 2014
07:42 EDTIREPAM, WisdomTree added to Franchise Pick list at Jefferies
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December 11, 2014
08:21 EDTIRIngersoll-Rand shares should be bought into 2015, says Bernstein
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December 9, 2014
09:38 EDTCAMActive equity options trading
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06:06 EDTIRIngersoll-Rand to acquire FRIGOBLOCK for EUR 100M
Ingersoll-Rand announced it has entered into an agreement to acquire FRIGOBLOCK for EUR 100M. The acquisition is expected to close in the first half of 2015, subject to regulatory approval. FRIGOBLOCK manufactures and designs transport refrigeration units for trucks and trailers in Europe, primarily sold in Northern Europe. FRIGOBLOCK operates in Essen, Germany and is home to about 150 employees. The company’s annual revenue is approximately EUR 41M. The company expects the business to be accretive to EPS, EBITDA margins and ROIC in its first full year of operation. Upon closing of the transaction, Ingersoll Rand will welcome the FRIGOBLOCK brand into the Ingersoll Rand family of brands and will become part of the Transport Solutions business, which goes to market as Thermo King and is consolidated within the company’s Climate Segment.

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