Trane Technologies Plc · NYSE:TT
Trane Technologies — Ingersoll Rand — Merger or Acquisition (August 2014)
13 slides from Trane Technologies's merger presentation, Aug 18, 2014
Slide 1: Acquisition of Cameron Centrifugal Compression Division
Acquisition of Cameron Centrifugal Compression Division August 18, 2014
Slide 2: Safe Harbor
Safe Harbor This presentation includes “forward-looking statements,” which are statements that are not historical facts, including, but not limited to, statements that relate to our intent to acquire the assets of Cameron International Corporation’s Centrifugal Compression division, the expected ben
Slide 3: Compelling Strategic and Financial Rationale for Acquisition
Compelling Strategic and Financial Rationale for Acquisition Strengthens our leading compression business Expands product breadth and end market coverage Enhances key engineering and machining capabilities Provides access to attractive, fast-growing end markets Meaningful synergy potential Adheres t
Slide 4: Cameron Centrifugal: Overview of leading centrifugal compression manufacturer
Cameron Centrifugal: Overview of leading centrifugal compression manufacturer • Leading manufacturer and service provider of Revenue by geography (2013) centrifugal compressors used in wide range of Americas AsiaPac & 30% 38% Middle East industries such as oil & gas, power generation and air separat
Slide 5: Cameron Centrifugal: Overview of Broad Compression Portfolio
Cameron Centrifugal: Overview of Broad Compression Portfolio Engineered Air Process Gas Plant Air Aftermarket Description • Compressed air and • Mission-critical • Clean, dry, oil- • Complete range of nitrogen for process gas free compressed aftermarket services industrial compression air and repair
Slide 6: Compression Portfolio Expansion Enhances Ingersoll Rand's Overall Compression Capabilities
Compression Portfolio Expansion Enhances Ingersoll Rand’s Overall Compression Capabilities 6
Slide 7: Strong Global Operations and Channel Capabilities
Strong Global Operations and Channel Capabilities • 2 manufacturing facilities: US and China • 11 sales offices on 4 continents • 5 aftermarket service centers: Houston (TX), Buffalo (NY), Milan (Italy), Pune (India) and Gaomi (China) • ~90 distributors in 55 countries • ~$100M high-margin aftermark
Slide 8: Key Financial Highlights Demonstrate Significant Value Creation Opportunity
Key Financial Highlights Demonstrate Significant Value Creation Opportunity • $850M purchase price • 2015 EBITDA multiple ~10.5 excluding synergies and ~6.5 with gross synergies • Anticipate funding through a combination of cash and debt • Structure: Primarily asset purchase • Expect to generate mea
Slide 9: Synergy Potential Provides Substantial Incremental Value
Synergy Potential Provides Substantial Incremental Value • Broader, integrated product offerings for customers Revenue • Leverage Ingersoll Rand service network and growth initiatives • Direct material procurement Cost • Streamline engineering/new product development efforts • Leverage of overhead s
Slide 10: Acquisition Consistent with Disciplined, Balanced Capital Allocation Approach
Acquisition Consistent with Disciplined, Balanced Capital Allocation Approach to Maximize Shareholder Value • Maintain strong balance sheet and solid investment grade metrics to fund future investments and growth • Anticipate refinancing of 2015 maturities ($500M) • Anticipate moderate incremental d
Slide 11: Transaction Timeline with Expected Closing Before End of Year 2014
Transaction Timeline with Expected Closing Before End of Year 2014 Event Date Announcement August 18, 2014 Regulatory approvals Now – 4Q 2014 Expected close Before end of year Integration Through 2015 11
Slide 12: Summary
Summary • Strategic addition to our core Compressed Air business and enterprise compression capabilities • Consistent with articulated strategy • Meaningful synergies generated • Accretive to EBITDA margins, EPS and ROIC in 2015 and beyond • Will update progress and estimates with Q3 earnings 12
Slide 13: Contact
“Ly Ingersoll Rand.