Ingersoll Rand Sells Bobcat To Doosan

Hamilton, Bermuda— Ingersoll Rand Co. Ltd. announced that it has agreed to sell its Bobcat utility equipment and attachments business units to Korean manufacturer Doosan Infracore for cash proceeds of approximately $4.9 billion. The sale is subject to customary closing conditions and is targeted

The combined businesses manufacture and sell compact equipment, including skid-steer loaders, compact track loaders, mini excavators, and telescopic tool handlers; portable air compressors, generators and light towers; general-purpose light construction equipment; and attachments. For full-year 2006 these businesses collectively generated approximately $2.6 billion in revenues. The sale includes manufacturing facilities in Gwinner and Bismarck, N D.; Carrollton, Ga.; Litchfield, Minn.; Petersburg, Va.; Wujiang, China; Dobris, Czech Republic; Lyon and Pontchateau, France; Slane, Ireland; and Tredegar, Wales. The businesses employ approximately 5,700 people worldwide.

"The sale of Bobcat utility equipment and attachments represents the last major action to transform our business portfolio to reposition Ingersoll Rand as a diversified industrial company," said Herbert L. Henkel, chairman, president and chief executive officer. "We remain focused on driving growth and creating shareholder value through three strategic platforms serving global climate control, industrial and security markets. I am confident that these businesses will deliver consistent financial performance over the long term and across all phases of the economic cycle."

Within days of the reported sale, Bobcat Co., in a move intended to expand its top market position in compact equipment, announced that it has signed a long-term strategic agreement with a highly respected Korean manufacturer, Daedong Industrial Co. Ltd., to produce a line of Bobcat-branded compact utility tractors.

"This alliance brings together the strengths of two respected and recognized companies," said David Rowles, president of Bobcat Americas. "By combining the Bobcat global brand, dealer network and service with Daedong's commitment to compact tractor design and technology, we can provide our customers with the quality compact equipment experience they've come to expect from Bobcat. We plan to start offering compact utility tractors to customers later this year."

"Daedong is very pleased to have entered into this agreement with Bobcat Co.," said Jun-Sik Kim, president of Daedong. "We, as a company, look forward to building on our strengths by providing Bobcat customers with quality, affordable tractors with marketplace staying power through this alliance." Daedong has produced compact equipment products for the past 60 years.

"This compact utility tractor line will complement our current Bobcat compact equipment lineup, which includes skid-steer, compact track, all-wheel-steer, and mini track loaders; compact excavators; telescopic tool carriers; utility vehicles; utility work machines; and job-matched attachments," said Bruce Collins, vice president of attachments and vehicles for Bobcat Co.

In evaluating this market, Bobcat did extensive voice-of-customer and voice-of-dealer work to validate specific compact utility tractor features. The Bobcat project team worked with a team from Daedong to create a compact utility tractor that meets Bobcat-brand expectations.

Nearly 50 years ago, Bobcat introduced a compact front-end loader that became the world's first skid-steer loader, later adopting the familiar "Bobcat" brand.