Ingersoll-Rand plc IR recently announced that it has closed the acquisition of FRIGOBLOCK – one of the largest refrigerated transport companies for Euro 100 million equivalents to $111.4 million. (Euro 1 is equivalent to $1.1136 as per exchange rate of Mar 5).
Post acquisition, FRIGOBLOCK will become one of the brands under the company's Transport Solutions business that operates the 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 is a strategic fit for the company and is likely to be accretive to its earnings. It further broadens the portfolio of transport refrigeration products and services in Europe and strengthens key research and design capabilities for Ingersoll. We believe that such opportunistic acquisitions would serve as growth drivers, supplementing the company’s organic growth.
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 and aims to provide customers with a complete portfolio of solutions that are reliable, safe, efficient and environmentally responsible at the same time.
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 appear attractive include II-VI Inc. IIVI, ESCO Technologies Inc. ESE and AO Smith Corp. AOS, each carrying a Zacks Rank #2 (Buy).
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