INGERSOLL RAND AS AN ACQUIRER

Our decentralized operating model is core to our culture. We believe it allows our businesses to be nimble and quick–making decisions locally through close customer contact. Our decentralized model is also an ideal platform for companies that we acquire. It ensures that our businesses continue to operate as successfully as they did prior to our ownership but with the strength of the group behind them.

Ingersoll Rand businesses benefit directly from being a part of the group. Whether through exposure to our global customer base, access to low cost manufacturing or the sharing of best practices across the organization, our businesses decide locally what fits best with their strategy.

Becoming part of Ingersoll Rand also provides access to capital. We believe in continuing to invest in our businesses whether through supporting expansion and innovation or through follow-on acquisitions.

WHAT MAKES AN INGERSOLL RAND BUSINESS?

Ingersoll Rand businesses provide high-impact, highly engineered products used in industrial processes. Many of our successful acquisitions were family businesses with long operating histories–some over 100 years. Typically Ingersoll Rand businesses have the following characteristics:

  • Are market leaders in their core markets
  • Long standing, deep customer relationships
  • Serve stable and attractive end markets
  • A history of steady revenue with attractive margins
  • Strong recurring revenue through a reliable parts or consumables stream

Why IR? - Talking Points for Potential Sellers

Albin Pump

Christian Söderholm

"With IR, I felt that I had a partner that would continue to develop and grow my business."

Christian Söderholm
Founder and Managing Director, Albin Pump SAS
Joined Ingersoll Rand in September 2020

  1. We have a culture of collaboration and performance
  2. We are guided by a commitment to Making Life Better
  3. Employee ownership: every employee is a shareholder, sharing in the future success of the company
  4. IR is in the top X% of industrial companies in employee engagement
  5. We value diversity, equity, and inclusion: welcoming new teammates brings us new perspectives and makes us stronger
  6. We offer the stability that comes with 162 years of developing products and solutions for global industrial markets
  7. We know our products, markets, and customers exceptionally well and value, develop, and reward new teammates who can enhance and expand our domain expertise
  8. We operate a decentralized model, valuing small and medium business units and empowering employees to make smart and fast decisions that put customers first
  9. We have the financial strength to pay fair value for high quality businesses

What Christian said about choosing to join IR:

  • IR gave me confidence by maintaining contact over a long period of time; it showed commitment 
  • It was a team approach: having more than one contact person was positive, it showed a high level of interest and that you were serious about the acquisition
  • IR had knowledge related to the product and how to develop it
  • IR had an ambition to develop the business in a clear direction 
  • I had context and could clearly see how my business would fit into the IR portfolio

MD Pneumatic & Kinney Blowers

acquisition-strategy-md-01

"Ultimately our employees became part of your family, and that’s what we wanted"

Steve Westfall
President and CEO, Tuthill Corporation
Tuthill Vacuum and Blower Systems (TVBS) joined Ingersoll Rand in February 2021

What Steve said about the process of selling TVBS to IR:
  • Vicente inquired about TVBS years ago, found the right decision maker, got to know me, and stayed in touch every three or four months.  We formed a relationship.  He got to know me.  No one else did that.
  • We made the choice to go with IR because of Vicente’s relationship.  He got to know us and we trusted him.
  • We felt like IR had a similar culture to our own.  We saw it on the website and we felt it in our conversations.
  • I felt like IR was the best place for our business and our employees.  We never went to market.  We literally didn’t talk to anyone else.
  • We had interest from Atlas Copco, from Howden-Roots, and from many foreign entities.  But it would have been just a transaction with any of them.  It was about more than that with IR.
  • Chris Miorin has been a champion.  He was responsive and supportive, and he knew when to step in.  He did a really, really nice job.  I didn’t know him before this, but I met him once and I got to know him.  Getting to have that relationship opens the door and creates trust.
  • We did this transaction in four months.  We had a certain rhythm, never once a major argument.  Sure there were tense moments but whenever there was an issue we got on the phone to resolve it.  There was a lot of collaboration.  The whole IR team created the relationship.
  • During diligence, the IR team showed up and were curious, they really wanted to understand our business.  They communicated how things fit.  They had constructive conversations with our employees.
  • I’ve been a part of many deals in my career.  Some companies buy and don’t show up on day one.  After the announcement, your team showed up and the message was clear and concise.  One thing that stood out is that you had an agenda for the three day session, there were breakout sessions, and you gave our employees the opportunity to ask questions and learn.