Ingersoll Rand Inc. (NYSE:IR), a global provider of mission-critical flow creation and industrial solutions, completed the sale of its Specialty Vehicle Technologies Segment (“Club Car”) to the global private equity firm Platinum Equity. Ingersoll Rand Execution Excellence (IRX), implemented throughout the divestiture process, enabled the company to over deliver on its commitment to complete the sale by the third quarter of 2021.
The all-cash transaction, valued at $1.68 billion (approximately 12.1x 2020 Specialty Vehicle Technologies Segment Adjusted EBITDA), materially reduces Ingersoll Rand’s net leverage to <1.0x and provides significant capital flexibility. The company will use the capital to create long-term value for stockholders, including significant organic and inorganic investment into core, sustainability-oriented, mission-critical flow creation technologies and industrial solutions supported by long-term growth trends.
The Specialty Vehicle Technologies Segment is not included in the company’s 2021 guidance that was reviewed during Q1 earnings call on April 29, 2021.
Results from the Specialty Vehicle Technologies Segment will be reported in discontinued operations for the second quarter of 2021 and comparable prior periods will be recast on a consistent basis.
About Ingersoll Rand Inc.
Ingersoll Rand Inc. (NYSE:IR), driven by an entrepreneurial spirit and ownership mindset, is dedicated to helping make life better for our employees, customers and communities. Customers lean on us for our technology-driven excellence in mission-critical flow creation and industrial solutions across 40+ respected brands where our products and services excel in the most complex and harsh conditions. Our employees develop customers for life through their daily commitment to expertise, productivity and efficiency. For more information, visit www.IRCO.com.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $25 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 25 years, Platinum Equity has completed more than 300 acquisitions.