New York, US: Ingersoll Rand is selling a 60% stake in its Hussmann stationary refrigerated display case business to private equity firm Clayton Dubilier & Rice for about $370m.
The cooling systems maker said it would use the cash to speed up its $2b share repurchase program which began on June 8, and expects to purchase 28 million to 32 million shares by the end of 2011.
CD&R will invest $195m of equity to acquire convertible participating preferred stock of Hussmann in the transaction. Ingersoll Rand will retain a 40% equity interest in the company.
Hussmann was sold to Ingersoll in 2000 for $1.55b in cash. The business, with sales of about $800m last year, makes food display cases used by 17 of the largest 20 retailers in North America, including Wal-Mart and Target Corp.
Ingersoll-Rand is a diversified company that provides temperature controll products for buildings, transport, food and perishables.
