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.