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FILE PHOTO: Gardner Denver's commercial information is displayed on a screen during its IPO on the New York Stock Exchange (NYSE) floor in New York, USA on May 12, 2017. REUTERS / Brendan McDermid
(Reuters) – Industrial machinery maker Gardner Denver Holdings Inc. is about to merge a division of Ingersoll-Rand Plc, creating a company whose business value, including debt, has been ruled out. about 15 billion dollars (11.6 billion pounds sterling), The Wall Street Journal reported Sunday.
The deal, which could be announced as early as this week, would involve a mix of cash and stock for Ingersoll shareholders, said the WSJ, citing sources.
The transaction would be structured as a Reverse Morris Trust, a tax-efficient way for businesses to sell a division, and Ingersoll's shareholders would own just over half of the new company.
Gardner Denver General Manager Vicente Reynal will head the merged company, the newspaper said.
Gardner Denver, partly owned by private equity firm KKR & Co Inc., did not immediately respond to a request for comment. Ingersoll-Rand declined to comment on the agreement.
The Ingersoll climate segment, which includes its heating, ventilation and temperature-controlled air transport operations, will not be part of this agreement, the WSJ said.
Report by Rishika Chatterjee in Bengaluru; Edited by Peter Cooney
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