Ingersoll-Rand plc (IR) recently announced it has entered into an agreement to acquire FRIGOBLOCK – one of the largest refrigerated transport companies for Euro 100 million equivalent to $122.9 million. (Euro 1 is equivalent to $1.22859 as per exchange rate of Dec 9).
The acquisition is expected to close in the first half of 2015. On closing, FRIGOBLOCK will become one of the brands under the company's Transport Solutions business that operates Thermo King brand and is consolidated within the company’s Climate segment.
FRIGOBLOCK manufactures and supplies transport and vehicle refrigeration units for customers in Europe. This acquisition further broadens the portfolio of transport refrigeration products and services in Europe and strengthens key research and design capabilities for Ingersoll.
FRIGOBLOCK’s annual revenue is approximately Euro 41 million equivalent to $50 million. This acquisition is expected to be accretive to Ingersoll’s earnings per share, EBITDA margins and return on invested capital (ROIC) in its first year of operation. While FRIGOBLOCK will get an access to Ingersoll’s resources and client base.
Ingersoll expects to achieve steady improvements in operating profitability with a strong commitment to consistently invest in new products and technologies. With the use of innovative technology, FRIGOBLOCK aims to deliver products with low fuel consumption and reduced noise, providing access to attractive hybrid and non-diesel (electric) technologies. This acquisition is a strategic fit for the company and is likely to help expand its transportation business.
Ingersoll is a globally diversified industrial company, which designs, manufactures and sells a range of industrial and commercial products and services. It provides energy-efficient solutions, residential solutions, technology and security-related services both in the domestic and international markets.
Ingersoll currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look in the industry include Blount International Inc. (BLT) carrying a Zacks Rank #1 (Strong Buy) along with EnPro Industries, Inc. (NPO) and Middleby Corp. (MIDD), each carrying a Zacks Rank #2 ( Buy).
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