Gardner Denver Holdings Inc. is nearing a deal to merge with a division of Ingersoll-Rand PLC, according to people familiar with the matter, in a combination that would create the world’s second-largest manufacturer of industrial pumps and compressors with a market capitalization of around $11.6 billion.
Though the exact terms couldn’t be determined, the deal, which could be announced as soon as this week, would involve a mixture of cash and stock for Ingersoll
shareholders, the people said. It would combine Gardner Denver’s broad range of compressor, pump, vacuum and blower products and services with the part of Ingersoll-Rand that makes similar tools and systems as well as equipment for lifting and material handling, and golf carts.
, part-owned by private-equity firm KKR & Co., has a current market value of around $5.8 billion. The new business would have an enterprise value, including debt, of about $15 billion, the people said.
The deal would be structured as a so-called Reverse Morris Trust, a tax efficient way for companies to sell off a division. Ingersoll shareholders are expected to own just over half of the new company.
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