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Doosan to buy Ingersoll units for $4.9bn

Seoul, July 30, 2007

US industrial conglomerate Ingersoll Rand has agreed to sell its Bobcat business and two other units to South Korea's Doosan Infracore for cash proceeds of $4.9 billion, the two companies said.

The biggest ever overseas acquisition by a South Korean company will make Doosan one of the world's top seven construction equipment makers, the South Korean firm said.

Ingersoll signed a definitive agreement to sell Bobcat, the world's top compact construction equipment firm, and its utility equipment and attachment businesses, which in 2006 together generated $2.6 billion in sales and $370 million in operating profits.

"The sale of Bobcat, Utility Equipment and Attachments represents the last major auction to transform our business portfolio to reposition Ingersoll Rand as a diversified industrial company," CEO Herbert Henkel said in a statement.

"The prospective transaction reflects a fair price that recognizes the value of the businesses' assets."

Shares in Doosan Infracore jumped 4.97 percent on the news, outperforming a flat wider market.

A majority of the financing for the acquisition will be in the form of non-recourse debt and Doosan will be assuming $700 million in incremental indebtedness to complete the transaction, Doosan said.

The two firms aim to close the deal in the fourth quarter. Credit Suisse Securities and Goldman Sachs acted as financial advisers to Ingersoll and Doosan was advised by Citigroup. - Reuters     




Tags: Doosan | Ingersoll Rand | Bobcat |

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