Ingersoll to buy Trane for $10bn

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US conglomerate Ingersoll-Rand said it had agreed to buy Trane, an indoor heating and air conditioning systems maker, for about $10.1bn (£5.02bn).

The cash and stocks deal, which has received approval from both companies' board of directors, will expand Ingersoll's climate control business.

The firm will offer temperature control systems "for indoor, stationary, and transport applications worldwide".

The deal should be completed by the end of the first quarter of 2008.

'Transformation'

Ingersoll-Rand expects its combined climate control operations, which includes the brand names Hussmann, Koxka, Krack and Thermo King, should have revenues of $11bn in 2008.

Under the deal, Ingersoll-Rand will assume about $150m of Trane's net debt.

"This acquisition represents a significant next step in Ingersoll Rand's decade-long transformation to become a leading global diversified industrial company, with strong market positions across the climate control, industrial and security markets," said Ingersoll-Rand chief executive Herbert Henkel.

In July Ingersoll-Rand agreed to sell its Bobcat industrial machinery business to South Korean firm Doosan Infracore for $4.9bn.