By John Downey – Senior Staff Writer, Charlotte Business JournalMar 2, 2020 Updated Mar 3, 2020, 12:26pm EST
The new company is called Ingersoll Rand Inc. and trades on the New York Stock Exchange under the symbol IR. The original Ingersoll Rand becomes Trane Technologies, trading under the ticker symbol TT.
The new Ingersoll Rand and Trane will both be located on the existing corporate campus in Davidson. Both started trading publicly Monday morning.
The deal was set up as a Reverse Morris Trust, which essentially creates a tax-free merger of legacy Ingersoll Rand’s industrial segment with industrial manufacturer Gardner Denver. Original Ingersoll Rand shareholders own 50.1% of the new company, but it is run by Vicente Reynal. He was Gardner Denver’s CEO until the deal closed over the weekend. Three legacy Ingersoll directors will join seven Gardner directors on the new board.
Reynal is moving with the headquarters to Davidson.
Trane is run by Michael Lamach, who will also be in Davidson, where the Ireland-based company has its North American headquarters.
The deal was structured to make Trane a pure-play environmental innovation company focusing on heating, cooling and transport refrigeration.
“Our world is contending with unprecedented challenges of urbanization, natural resource scarcity and climate change,” Lamach says. “We excel where these global megatrends intersect with our innovation and advanced technologies for reducing carbon emissions from buildings, minimizing waste of food and other perishable goods, and generating productivity for our customers.”
Trane’s climate business accounted for about 80% of the old Ingersoll Rand’s revenue and is expected to have annual revenue of more than $12 billion for the new, focused climate company. It will have about 35,000 employees worldwide and includes the Trane and Thermo King HVAC brands.
Trane has 1,100 employees in Davidson.
The industrial businesses now part of the new Ingersoll include its compressor, materials handling and precision flow systems, as well as the legacy Ingersoll’s golf-cart manufacturing. These businesses will be added to the former Gardner’s compressors, blowers, industrial vacuums and pumps.
The new Ingersoll Rand has 16,000 employees and is expected to have annual revenue around $6.6 billion. It is not clear how many employees the new Ingersoll Rand will have in Davidson once the headquarters transition is complete.
Reynal says the merger “transforms our potential to generate extraordinary long-term value for our employees, customers, shareholders and communities.”
He says that Gardner’s traditional strength in Europe complements the strength in Asia and developing nations in the legacy Ingersoll industrial units.
“We operate from a customer-centric culture, as we know they lean on us to help make life better,” Reynal says. “We are enthusiastic that now, as a stronger company, we can deliver more comprehensive solutions and services across the globe.”