Bobcat’s parent company, Ingersoll-Rand Co., wants to let go of the construction equipment maker either by selling it outright or spinning it off to shareholders.
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Ingersoll, a Hamilton, Bermuda-based company, says it wants to move away from businesses it considers to be cyclical and plans a shift toward climate control, industrial and security businesses, Bloomberg reports.
The company expects a sale or spinoff by late 2007. On April 18, a Merrill Lynch analyst said Bobcat, based in
In a press release, Ingersoll says it’s investigating “strategic alternatives” for Bobcat and construction-related businesses that include utility equipment and attachments businesses. Wall Street apparently favors the move, as shares of Ingersoll rose nearly 7 percent in morning trading Tuesday, May 15. The company says the businesses generated $2.6 billion in sales in 2006.
“Our Bobcat, utility equipment and attachments businesses represent world-class operations with exceptional people, products and brands; however, these businesses no longer fit Ingersoll Rand’s long-term strategy,” says Herbert L. Henkel, chairman and CEO in a company press release. “The eventual outcome of our process to explore strategic alternatives for these businesses will be the strategic repositioning of Ingersoll Rand away from the capital-intense, heavy-machinery profile of the company’s past and toward a true diversified industrial company with powerful growth platforms consisting of climate control, industrial and security businesses.”
