Ingersoll Rand has agreed to sell its specialty vehicle technologies segment (Club Car) to Platinum Equity for $1.7 billion.
Club Car is a maker of low-speed, electric and gas-powered vehicles used in the golfing, commercial and consumer sectors. Augusta, Georgia-based Club Car was founded in 1958 and was purchased by a group of eight former executives of rival E-Z-GO (also located in Augusta and owned by Textron) in 1978. Club Car was acquired by Ingersoll Rand in 1995.
According to Ingersoll Rand, the purchase price represents approximately 12.1x Club Car’s 2020 adjusted EBITDA. Click HERE to review a PDF of Ingersoll Rand’s investor presentation on the sale of Club Car.
“Today’s announcement to divest Club Car demonstrates swift progression on our transformation journey,” said Vicente Reynal, CEO of Ingersoll Rand. “The Club Car divestiture achieves a premium valuation for the leader in the golf, commercial and consumer low-speed vehicle market.”
“Club Car has a long history of leadership in golf, utility and consumer low-speed vehicles, and we look forward to nurturing their core business and supporting the diverse needs of the company’s customers,” said Tom Gores, the CEO of Platinum Equity. “We are excited to partner with the Club Car team and support the business as it executes on its strategy of operational excellence and ongoing, profitable commercial growth.”
Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. The firm is currently investing from Platinum Equity Capital Partners V LP, a $10 billion buyout fund, and Platinum Equity Small Cap Fund LP, a $1.5 billion buyout fund focused on the lower middle market. The firm has completed more than 300 acquisitions since its founding in 1995 and is headquartered in Beverly Hills.
Ingersoll-Rand (NYSE: IR) is a diversified industrial manufacturing company formed in 1905 by the merger of Ingersoll-Sergeant Drill Company and Rand Drill Company. The company is based near Dublin in Swords, Ireland.
BofA Securities is leading the debt financing for Platinum Equity and Club Car, and Goldman Sachs is the financial advisor to Ingersoll Rand on this transaction.
The buy of Club Car by Platinum is expected to close by the end of the third quarter.
© 2021 Private Equity Professional | April 13, 2021