Doosan Buys Bobcat from Ingersoll Rand - Industry Beat
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Doosan Buys Bobcat from Ingersoll Rand

CED Magazine September 2007

Article Date: 09-03-2007
Copyright(C) 2008 Associated Equipment Distributors. All Rights Reserved.

Utility and attachments businesses are also part of the deal.

Bobcat, along with Ingersoll Rand's utility and attachments business units will soon be under Korean ownership. As part of a significant restructuring, the company has agreed to sell the three business units for $4.9 billion to Doosan Infracore, a manufacturer of medium- and large-scale construction equipment.

Ingersoll Rand sold its road building unit in April. Following this sale, the company will have generated proceeds of approximately $6.2 billion, which Chairman Herbert Henkel says they will use to "make acquisitions that enhance the geographic reach, product lines, and manufacturing capabilities of our strategic business platforms...and augment organic growth by funding innovation and new product efforts.

"The sale represents the last major action to reposition Ingersoll Rand as a diversified industrial company," said Henkel. "We remain focused on driving growth and creating shareholder value through global climate control, industrial and security markets."

Doosan purchased the units in order to enhance its product portfolio and to expand and strengthen its global manufacturing and sales networks, according to a press release. Its combined business units have an established network of over 2,700 dealers in the U.S. and Europe, and operate 16 manufacturing plants in six countries around the globe.

In 2006, the soon-to-be-acquired Ingersoll Rand businesses generated $2.6 billion in sales and $370 million in operating profits.

Upon completion of the transaction, Doosan will have a combined network of more than 3,700 dealers worldwide and 20 manufacturing plants. The transaction will boost Doosan's worldwide ranking from 19 to 7 in the construction equipment sector.

Yong Maan Park, Doosan's vice chairman, says he plans to maintain the current management.

"The businesses we are acquiring have outstanding management personnel and engineers, which we consider to be the most important criteria of our acquisition strategy," said Park.

Ingersoll Rand's combined businesses manufacture and sell compact equipment, such as skid-steer loaders, compact track loaders, mini-excavators and telescopic tool handlers; portable air compressors, generators, and light towers; light construction equipment; and attachments.

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