Ingersoll-Rand news on Monday about a possible merger with Gardner Denver (NYSE:GDI) has IR stock soaring.
According to recent rumors, the two companies are close to completing a merger. This would reportedly have Gardner Denver merging with a division of Ingersoll-Rand (NYSE:IR). The rumors don’t say how much the deal will be worth, but notes that GDI would use a mix of cash and stock to fund it.
The Ingersoll-Rand news rumors claim that the deal will result in a business with a value of $15 billion, when including debt. It also notes that the merger would not include include the climate division of IR.
This Ingersoll-Rand news claims that the new company resulting from the merger will be lead by Gardner Denver CEO Vicente Reynal. The rumor also says that IR shareholders will own a little more than half of the company once the deal is complete, reports Reuters.
It’s still up in the air about when this deal between Ingersoll-Rand and Gardner Denver will be announced. However, anonymous sources claim that it could be announced by the companies as early as this week.
If this deal does go through, then it will result in the new company rising to near the top of its market. This would have it sitting as the second largest maker of of industrial pumps and compressors in the world.
IR stock was up 5% and GDI stock was up 15% as of noon Monday.
As of this writing, William White did not hold a position in any of the aforementioned securities.