Synergy Targets for Ingersoll-Rand/Trane Merger

Ingersoll Rand anticipates $300 million in annual pre-tax run-rate savings by 2010 from the Trane acquisition, split between SG&A and gross margin improvements. An achievable target of $125 million pre-tax is set for 2008. Additional revenue synergies from market expansion and cross-selling are expected but not yet quantified.

“During its analyst call on Dec. 17, Ingersoll Rand stated that it anticipates annual run rate savings of $300 million pre tax by 2010. These savings will be pretty evenly divided between selling, general and administrative (SG&A) expense and gross margin.”

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