Volvo and Ingersoll Rand take opposite paths: Part 4

As mentioned in a prior post, Ingersoll Rand recently sold its road construction division to Volvo Construction.

Now Ingersoll Rand is looking to sell their iconic Bobcat skid-steer loaders unit (as well as other construction-related businesses) before the end of the year..

The reason? The same that prompted them to sell their Road Development division: Bobcat no longer fits the company's long-term strategy of diversification. Once enamored with construction, the company has clearly opted to get out of that industry.

Volvo, on the other hand, is clearly moving along the path of consolidation and focus. They are pulling out all the stops in their quest for dominance in their two leading divisions: trucks, and heavy equipment.

Bobcat employs 2,600 people in North Dakota, USA, and also has operations in the Czech Republic and China.

Paul Dickard, an Ingersoll-Rand spokesman, had this to say: "We're moving toward businesses that provide a more consistent growth stream for us."

Experts estimate the sale of Bobcat and other construction-related businesses could net Ingersoll between $3.2 and $3.6 billion dollars. Potential suitors are Ingersoll Rand's main competitors, Komatsu, Kubota, Terex and of course, again, Volvo. Several years ago, rumors had John Deere, and then Volvo, buying the Bobcat unit from Ingersoll Rand, but that never happened.

Posts in this series:

• Volvo and Ingersoll Rand take opposite paths: Part 1

• Volvo and Ingersoll Rand take opposite paths: Part 2

• Volvo and Ingersoll Rand take opposite paths: Part 3

• Volvo and Ingersoll Rand take opposite paths: Part 4

• Volvo and Ingersoll Rand take opposite paths: Part 5 – Bobcat sold

Tags: Ingersoll Rand, Bobcat, Volvo, Volvo Construction, construction equipment

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