Ingersoll Rand sells Club Car to private equity firm
By Chad Elmore21 April 2021
Following sale, IR to focus on core technologies and industrial solutions.
Ingersoll Rand Inc. entered into an agreement to sell its Specialty Vehicle Technologies Segment (Club Car) to the global private equity firm Platinum Equity. The all-cash transaction is valued at $1.68 billion and is expected to be completed by the third quarter of 2021, subject to customary closing conditions.
“Today’s announcement to divest Club Car demonstrates swift progression on our transformation journey,” said Vicente Reynal, chief executive officer of Ingersoll Rand. “The Club Car divestiture achieves a premium valuation for the leader in the golf, commercial and consumer low-speed vehicle market.
“We are excited about future opportunities to create long-term value for stockholders with the cash from the transaction, including significant organic and inorganic investment into our core business segments as we advance our growth strategies and expand our addressable market. We continue to leverage IRX to drive results and execute strategy, including portfolio optimization, and will continue to devote our energy to driving innovation across our businesses with a portfolio focused on core, sustainability-oriented, mission-critical flow creation technologies and industrial solutions supported by long term growth trends.”
Ingersoll Rand said it selected Platinum Equity because of its financial, operational and marketing expertise as well as its focus and interest in the automotive industry and mobility trends.
“Club Car has a long history of leadership in golf, utility and consumer low-speed vehicles, and we look forward to nurturing their core business and supporting the diverse needs of the company’s customers,” said Tom Gores, chairman and chief executive officer of Platinum Equity. “We are excited to partner with the Club Car team and support the business as it executes on its strategy of operational excellence and ongoing, profitable commercial growth.”