Ingersoll-Rand Names Security Spinoff Allegion
Ingersoll-Rand Plc (IR) registered to list its commercial and residential security business as a publicly traded company after billionaire investor Nelson Peltz won his push for a spinoff to boost shareholder value.
The company, with $2 billion in annual sales and products ranging from steel doors to electronic locks, will be called Allegion Plc and list on the New York Stock Exchange under the ticker ALLE, Ingersoll said in a statement today. Swords, Ireland-based Ingersoll said the spinoff will occur by the end of the year.
Peltz, who joined the Ingersoll board in August, last year called for the maker of air-conditioning systems, climate-control technologies and security systems to be split into three companies. Peltz’s Trian Fund Management LP held a 4.5 percent stake in Ingersoll as of March 31, according to data compiled by Bloomberg.
Ingersoll will name a CEO for the security company later this year. The spinoff is intended to be tax-free to shareholders, according to the statement. Ingersoll also announced five directors, including David Burritt, former chief financial officer of Caterpillar Inc., to sit on Allegion’s board.
Ingersoll rose 0.3 percent to $56.60 at the close in New York. The shares have advanced 18 percent this year compared with a 15 percent gain for the Standard & Poor’s 500 Index.
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