Ingersoll-Rand to Sell Road Development Unit

Ingersoll-Rand Company Limited announced that it has agreed to sell its Road Development business unit to AB Volvo for cash proceeds of approximately $1.3 billion. The sale, which is subject to government regulatory approvals and other customary closing conditions, is targeted to close in the second quarter of 2007.

“The Road Development business has been a strong contributor to Ingersoll Rand’s success for several decades and remains an industry leader with dedicated and talented employees,” said Herbert L. Henkel, chairman, president and chief executive officer. “However, the business’ markets and products do not fit within our transformed portfolio of diversified industrial businesses. I am confident that Road Development will benefit by joining a company sharing similar competencies and offering complementary products and services. We are pleased to have entered into this agreement with Volvo, which represents a strong strategic buyer for the business.