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Ingersoll-Rand Acquires Trane In $10.1 Billion Deal

Acquisition will create one of the world's largest makers of air conditioners and gives Ingersoll-Rand access to Trane's building and transportation cooling systems.

NEW YORK (AP) — Ingersoll-Rand Co. will acquire Trane Inc. in a $10.1 billion (euro6.96 billion) deal that would create one of the world's largest makers of air conditioners, the two companies announced Monday.
 
The deal gives Ingersoll-Rand, which makes Thermo King refrigerated trucks, access to Trane's building and transportation cooling systems.
 
''This acquisition represents a significant next step in Ingersoll-Rand's decade-long transformation to become a leading global diversified industrial company, with strong market positions across the climate control, industrial and security markets,'' said Chief Executive Officer Herbert Henkel.
 
Bermuda-based Ingersoll-Rand Co. manufactures everything from golf carts to home security and has a significant climate control business.
 
Piscataway, New Jersey.-based Trane, formerly known as American Standard Companies Inc., focuses its business almost exclusively on residential and commercial climate control.
 
Combining the climate control operations of Trane and Ingersoll-Rand ''creates a very strong business,'' said Fred Poses, Trane chairman and CEO.
 
The combined companies are expected to have 2008 revenues of $17 billion (euro11.72 billion), Henkel said.
 
Under the terms of the agreement, which is one of the largest industrial buyouts in recent years, Trane shareholders will receive a cash-and-stock trade: Ingersoll-Rand agreed to pay the shareholders $36.50 plus 0.23 of its shares for each Trane share.
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