Industrial goods manufacturer Ingersoll-Rand Plc (IR - Analyst Report) has set Dec 1, 2013 as the record and distribution date for the spin-off of its commercial and residential security businesses into a separate standalone company named Allegion plc. Following the spin-off, Allegion will trade on the New York Stock Exchange under the ticker name ALLE and Ingersoll will not have any ownership in the new entity.
On Dec 1, 2013, each Ingersoll shareholder will receive one Allegion share for every three Ingersoll shares held at the close of business on the record date of Nov 22, 2013. The fractional shares will be sold in the open market, proceeds of which will be distributed to those who are entitled to receive the Allegion fractional shares.
As part of this spin-off, Ingersoll has also realigned its financial reporting structure into two segments, namely Climate and Industrial, which is effective from fourth quarter results. Earlier, the company had four reportable segments, namely Climate Solutions, Residential Solutions, Industrial Technologies and Security Technologies, each commanding a leading position in the respective market.
While the Industrial segment remains unchanged, the Climate segment will include all of commercial and residential heating ventilation and air conditioning (HVAC) and transport solutions business.
With this realignment, Ingersoll expects to incur a charge of approximately 15 cents to 20 cents per share within the next two quarters. The restructuring initiative is aimed to provide greater focus on growth, continued implementation of business operating system and reduce complexity and overhead cost, thereby improving the long-term growth prospects and higher margin prospects.
Headquartered in Dublin, Ireland, Ingersoll-Rand Plc designs, manufactures, sells and services a diverse portfolio of industrial and commercial products across the globe. From enhancing the quality and comfort of air in homes and buildings to transporting and protecting food and perishables, the product portfolio of the company secures homes and commercial properties and increases industrial productivity and efficiency.
Ingersoll currently carries a Zacks Rank #3 (Hold). Other stocks that are worth a look in the industry include Flowserve Corp. (FLS - Analyst Report), DXP Enterprises, Inc (DXPE - Snapshot Report), and The Middleby Corp. (MIDD - Analyst Report), each carrying a Zacks Rank #2 (Buy).