(Reuters) – Pumps and compressors producer Ingersoll Rand Inc is nearing a deal to promote its golf cart enterprise to personal fairness agency Platinum Fairness LLC for round $1.7 billion, individuals acquainted with the matter stated on Sunday.
The deal will separate Ingersoll Rand from a enterprise it acquired in 1995. It’s the newest in a sequence of divestitures that CEO Vicente Reynal has launched into to pay down debt and streamline the corporate’s portfolio following the merger final 12 months of Ingersoll Rand’s industrial enterprise with Gardner Denver Holdings Inc.
A deal may very well be introduced as early as Monday, the sources stated, requesting anonymity forward of any official announcement.
Ingersoll Rand and Platinum Fairness didn’t instantly reply to requests for remark.
The deal can be a wager by Platinum Fairness on a possible rebound in golf as a leisure sport within the aftermath of the COVID-19 pandemic, which shrunk revenues for the trade by an estimated 6% in 2020, in line with a report by IBISWorld.
Ingersoll Rand offered a majority stake in its excessive strain options enterprise earlier this month to buyout agency American Industrial Companions for $300 million, lowering its publicity to the oil and fuel exploration and manufacturing market.
Los Angeles-based Platinum Fairness is run by billionaire founder Tom Gores. The agency says it has round $23 billion in property below administration and likewise owns U.S. basketball staff the Detroit Pistons.
Reporting by Joshua Franklin in New York; enhancing by Diane Craft