Ingersoll Rand in talks to sell Hussmann refrigeration business to CDR: report

Ingersoll Rand, the $14-billion global diversified industrial company is in late-stage discussions with private equity firm Clayton Dubilier & Rice to sell its Hussmann refrigeration business, Reuters today reported citing two people familiar with the matter.

St. Louis, Missouri-based Hussmann provides display cases, refrigeration systems, installation and service to supermarkets, mass merchants, warehouse clubs, convenience stores, drug stores and foodservice establishments around the world.

It was founded in 1906 by Harry Hussmann and acquired  by Ingersoll Rand in 2000 for $1.55 billion, becoming a part of Ingersoll Rand's climate control technologies sector.

Its products include refrigerated and non-refrigerated display merchandisers, refrigeration systems, evaporative condensers, heat exchange coils, beverage coolers, walk-in coolers and freezers, and other related products. 

While reporting its second quarter results, Ingersoll Rand chief executive Mike Lamach had said that the company was on track to sell Hussmann by the end of the third quarter. Lamach would not reveal the asking price, but analysts surmise that the unit may fetch below $1 billion.

Reuters had reported in March that Ingersoll Rand hired JPMorgan Chase & Co to sell Hussmann and the auction drew interest from private equity firms like Platinum Equity which has since dropped out from the bidding process.

The Ireland-based company had reported net income of $92.3 million on revenues of $3.9 billion in the second quarter, up 12 per cent compared with 2010. It has $1.3 billion in cash against $3.6 billion debt.