Ingersoll-Rand to spin off security division
Dec 10 (Reuters) - Diversified manufacturer Ingersoll-Rand Plc said it will spin off its security division and announced a $2 billion share buyback following shareholder pressure to unlock value.
The company, whose main business is heating and cooling systems, also raised its quarterly dividend to 21 cents per share.
The spin-off, buybacks and dividend hikes come as part of a strategic review undertaken by Ingersoll after Nelson Peltz's Trian Fund Management LP acquired a 7 percent stake and proposed a break-up of the company.
Ingersoll expects to complete the divestiture within the next 12 months.
Ingersoll's security technology division, which makes mechanical and electronic locks as well as steel doors, had a revenue of $1.63 billion in 2011. (Reporting by Mridhula Raghavan in Bangalore; Editing by Supriya Kurane)
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