Volvo and Ingersoll Rand take opposite paths: Part 5 - Bobcat sold
Ingersoll Rand sells Bobcat
A recent series of posts talked about how Volvo and Ingersoll Rand, two of the world's major construction equipment manufacturers, were taking completely divergent paths in their quest for improving results.
Volvo's decision has been to consolidate and focus on their two main divisions, trucks and heavy equipment. Meanwhile, Ingersoll Rand has decided the opposite as they try to diversify and shift to a diversity of industrial activities, such as refrigeration equipment, security, and others.
Now Forbes reports that Ingersoll Rand has sold off their Bobcat construction vehicle division, to Doosan Infracore of South Korea. The price? $4.9 billion.
That includes Bobcat plus Ingersoll Rand's utility equipment and attachments units, that make mini-excavators, skid-steer loaders, compact track loaders, telescopic tool handlers, portable air compressors, generators and light towers.
Doosan is a family controlled company that started in the construction equipment industry when it bough a controlling stake in faltering South Korean giant Daewoo Heavy Industries & Machinery, which they renamed Doosan Infracore.
With this acquisition, Doosan breaks into the top seven global construction equipment makers. Their goal is top five by 2015.
Bobcat employs 5,700 people worldwide, and had 2006 revenue of $2.6 billion. Doosan Infracore says their overall yearly sales should now reach $7.4 billion.
Ingersoll will use the money to make acquisitions, fund product development, and finance its share repurchase program.
Posts in this series:
Tags: Ingersoll Rand, Bobcat, Doosan, Doosan Infracore, construction equipment
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