The Augusta Press previously reported that Ingersoll Rand, the holding company for Club Car, Inc. planned to divest their interest in the company back in February. The estimated value at the time was $1.5 billion. A sale now seems imminent.
Ingersoll Rand announced this morning that it has entered into an agreement to sell Club Car for $1.68 billion. The sale is expected to be competed in the third quarter of 2021.
“Today’s announcement to divest Club Car demonstrates swift progression on our transformation journey,” said Vicente Reynal, chief executive officer of Ingersoll Rand. “The Club Car divestiture achieves a premium valuation for the leader in the golf, commercial and consumer low-speed vehicle market. We are excited about future opportunities to create long-term value for stockholders with the cash from the transaction, including significant organic and inorganic investment into our core business segments as we advance our growth strategies and expand our addressable market. We continue to leverage IRX to drive results and execute strategy, including portfolio optimization, and will continue to devote our energy to driving innovation across our businesses with a portfolio focused on core, sustainability-oriented, mission-critical flow creation technologies and industrial solutions supported by long term growth trends.”
The purchaser, Platinum Equity, was founded by Tom Gores in 1995. The company owns 40 operating companies worldwide worth over $25 billion. Platinum Equity has completed over 300 acquisitions the last 25 years.
The change of ownership is not expected to have any immediate effects on the some 800 local employees.
Joe Edge is the real estate columnist and Publisher for The Augusta Press. Reach him at joe.edge@theaugustapress.com
