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Ingersoll-Rand to sell majority interest in Hussmann

Ingersoll-Rand plc has entered into an agreement to sell a 60 per cent stake in refrigeration cabinet co. Hussmann to the private equity firm Clayton Dubilier & Rice.

Ingersoll Rand will receive cash proceeds of approximately $370 million at closing and will retain a 40 per cent equity interest in the business. The company will use the cash to expedite its $2 billion share repurchase program, which began on June 8, 2011 and expects to purchase 28 to 32 million shares by the end of 2011.

“This transaction with CD&R allows us to participate in the future success of Hussmann,” said Michael W. Lamach, chairman, president and chief executive officer of Ingersoll Rand. “CD&R is committed to ensuring a seamless transition and maximizing the long-term prospects for the business. For Ingersoll Rand, selling a portion of the Hussmann business now provides immediate value to our shareholders, as well as benefit in the future from the divestiture of our remaining interest.”

“Hussmann is a clear market leader with an outstanding reputation, a history of innovation, strong long-term customer relationships, a dedicated work force and significant manufacturing scale advantages,” said Nathan K. Sleeper, a Partner at CD&R. “These core strengths form a solid foundation from which to build an even more successful enterprise.”

Ingersoll Rand selected CD&R due to the firm’s experience with food and retail markets, and a strong emphasis on driving profitable growth. Members of its leadership team have deep and relevant experience in the refrigeration, food service and retail markets.

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