Hamilton, Bermuda-based Ingersoll Rand has completed the sale of its Road Development business unit to AB Volvo for cash proceeds of approximately $1.3 billion. The sale is complete in all countries except India, which is expected to close shortly. The Road Development business unit manufactures and sells asphalt paving equipment, compaction equipment, milling machines, and construction-related material handling equipment.
“The sale of the Road Development business reflects our strategy to transition away from capital-intense, heavy-machinery businesses and improves the company's efforts to achieve aggressive financial objectives consistently over the long term,” said Herbert Henkel, chairman, president and CEO.
Henkel said the company will use the proceeds of the sale, in conjunction with its cash flow, to supplement organic growth with acquisitions that extend the company's product lines, expand geographic markets, and enhance recurring revenue streams, as well as to increase its share repurchase activity.
Click here for previous coverage of the sale.