Pumps and compressors manufacturer Ingersoll Rand Inc is nearing a deal to sell its golf cart business to private equity firm Platinum Equity LLC for around $1.7 billion, people familiar with the matter said on Sunday. The deal will separate Ingersoll Rand from a business it acquired in 1995.
The deal would be a bet by Platinum Equity on a potential rebound in golf as a recreational sport in the aftermath of the COVID-19 pandemic, which shrunk revenues for the industry by an estimated 6% in 2020, according to a report by IBISWorld.
Ingersoll Rand sold a majority stake in its high pressure solutions business earlier this month to buyout firm American Industrial Partners for $300 million, reducing its exposure to the oil and gas exploration and production market.
Los Angeles-based Platinum Equity is run by billionaire founder Tom Gores. The firm says it has around $23 billion in assets under management and also owns U.S. basketball team the Detroit Pistons.
Reporting by Joshua Franklin in New York; editing by Diane Craft
Can't stop reading? This and all news articles are property of their creators, many are not owned or provided by Private Equity Insider. As an event organizer and community platform, we curate content from reliable sources for your suggested reading, and advise you to read the full articles from the referenced authors and sources.