Ingersoll Rand to spin off its security business
Ingersoll Rand announced this week that it plans to spin off its security businesses, resulting in the creation of a new company.
As a result, Ingersoll Rand will focus on its industrial, transport refrigeration, and heating, ventilation and air conditioning (HVAC) businesses, while an as yet unnamed company (referred to in a company-issued statement as the “new security” company) will take over its commercial and residential security interests.
“Given the distinct strengths and strategies of the two proposed companies, the Board believes that this structure will enable investors to value our different businesses separately, creating value for both companies and their shareholders,” said Michael W. Lamach, Ingersoll Rand’s chairman and chief executive officer, in a statement.
Lamach will continue in his role as chairman and CEO of Ingersoll Rand following the spin-off. The new company, which will operate as a separate entity from Ingersoll Rand, will combine residential and commercial security businesses and manage all security brands, including: Schlage, LCN, Von Duprin, Interflex, CISA, Briton, Bricard, BOCOM Systems, Dexter, Kryptonite, Falcon and Fusion Hardware Group.
No date has been given yet for the name of the new security company, nor has the company released any information about the future of staff or office locations. The spin-off is expected to be completed in approximately one year pending approvals. “As you might imagine, there is an enormous amount of work moving forward,” said spokesperson Misty Zelent in an interview.
Zelent said that the decision to spin off security was made as the result of an annual review process the company typically performs in the fourth quarter. “Annually we go through a review of our portfolio of companies. This was the result of one of those reviews. It was felt that combining the commercial and residential security (businesses) and spinning off would really enhance both shareholder and company value. That was the rationale behind it.”