IR Sells off Energy Division

Ingersoll-Rand Company Limited (IR) has sold its Dresser-Rand business division to an investment group managed by First Reserve Corporation.

The Dresser-Rand division netted $1.2 billion, and was an energy industry division which had dealt in turbines, compressors and energy plant control systems.

"With the sale of Dresser-Rand, we have largely completed our portfolio transformation to a diversified industrial company," said Herbert L. Henkel, chairman, president and chief executive officer of Ingersoll-Rand in a statement released to the press. "Since 2000, we have divested several non-core businesses and acquired 30 businesses that fit our global growth strategy. As a result of these transactions, we have substantially transformed our business over the last several years, and believe that all of our businesses today have excellent future growth prospects."

"We believe the platforms now in place -- Security and Safety, Climate Control, Industrial Solutions and Infrastructure -- will allow for substantial future growth in earnings, margins and return on invested capital," Henkel said.

IR said it expects to use some of the sale's proceeds to acquire business related to its core business plan, and to stock repurchasing.