South Korean conglomerate Doosan Infracore has agreed to buy Ingersoll-Rand’s Bobcat construction vehicle unit for $4.9bn – more than some analysts had predicted the business would fetch. The move, which also includes the sale of Ingersoll’s utility equipment and attachment units, is the biggest ever overseas purchase by a Korean company.
Doosan Infracore said it will become the world’s seventh-largest construction equipment maker, almost doubling its sales to about 7.6 trillion won, from the 4.4 trillion it had expected before the deal. It is part of Doosan Group, a diversified conglomerate which has interests ranging from restaurants and publishing to animal feed. Korea Development Bank is financing the all-cash deal.
For Bermuda-based Ingersoll the deal represents a tighter focus on its air conditioning and security business, and should help limit its exposure to the cyclical U.S. housing sector, following the recent downturn.