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Ingersoll Rand Inc IR

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Ingersoll-Rand Continues Portfolio Transformation With Sale of Club Car; Raising Fair Value Estimate

Analyst Note

| Krzysztof Smalec, CFA |

Narrow-moat Ingersoll-Rand has agreed to sell its specialty vehicle technologies business, Club Car, to Platinum Equity. Ingersoll-Rand will receive $1.68 billion in cash, which implies an enterprise value/2020 adjusted EBITDA multiple of roughly 12 times. The company expects the transaction to close by the third quarter of 2021. We have increased our fair value estimate for Ingersoll-Rand to $49.50 from $46, which reflects the Club Car sale, slightly more optimistic margin assumptions, and time value of money.

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Company Profile

Business Description

Ingersoll-Rand, Inc. was formed through the merger of Gardner Denver and Ingersoll-Rand PLC’s industrial segment. After the merger, the firm’s portfolio consists of three business lines: industrial technologies and services, precision and science technologies, and specialty vehicle technologies. Ingersoll-Rand serves a variety of end markets, including industrial, medical, and energy. Its broad portfolio of products includes compression, blower and vacuum, fluid management, upstream and midstream energy solutions, as well as small electric vehicles and power tools and material handling solutions. Ingersoll-Rand generated roughly $4.9 billion in revenue in 2020.

Contact
800-A Beaty Street
Davidson, NC, 28036
T +1 704 655-4000
Sector Industrials
Industry Specialty Industrial Machinery
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 15,900