Ingersoll-Rand Co. Ltd. announced that it has completed the sale of its Road Development business unit to AB Volvo in all countries except India, which is expected to close shortly, for cash proceeds of approximately $1.3 billion. 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 L. Henkel, chairman, president and chief executive officer. "Overall, the sale will generate net cash proceeds of approximately $1.05 billion for Ingersoll-Rand.
"We will use the proceeds of this sale, in conjunction with our strong cash flow, to supplement our organic growth with acquisitions that extend our product lines, expand our geographic markets and enhance our recurring revenue streams, as well as to increase our share repurchase activity."