NEW YORK (AP) -- Ingersoll-Rand PLC said Monday it has agreed to sell a 60 percent stake in its Hussmann refrigerated display case business to the private equity firm Clayton Dubilier & Rice LLC.
The Irish industrial manufacturer said it would receive cash proceeds of $370 million at closing.
Ingersoll said it won't raise its financial forecasts to reflect the expected boost from the sale, due to growing uncertainty in the broader economy. The company will maintain a 40 percent stake in the unit.
It will use the proceeds from the sale to speed up its $2 billion shares buyback program, which began on June 8. It expects to repurchase between 28 million and 32 million shares by the end of this year.
Ingersoll-Rand expects the sale to close on Sept. 30.
For the full-year, the company still expects earnings from continuing operations between $2.90 and $3.10 per share, excluding impairment charges related to the business sale. Analysts polled by FactSet, who tend to leave out one-time items from their estimates, expect $2.97 on average.
Ingersoll-Rand makes products ranging from air conditioning systems to golf carts.
Hussmann makes refrigerated and non-refrigerated display cases, refrigeration systems, evaporative condensers, heat exchange coils, beverage coolers, walk-in coolers and freezers and related products.
It had 2010 revenue of about $800 million, according to Clayton Dubilier & Rice.
Ingersoll-Rand's U.S. shares fell 48 cents, or 1.5 percent, to $31.38 in morning trading Monday.