Ingersoll-Rand Plc (IR:US) Chief Executive Officer Mike Lamach said Allegion Plc, the security unit that’s being spun off, may have a market capitalization of about $4 billion when it begins trading at the end of this year.
Allegion, which sells residential and commercial door locks, will have about 100 million outstanding shares, Lamach said in a telephone interview today. That would value each share at about $40. David Petratis, who previously ran Quanex Building Products Corp. (NX:US), was named CEO of the business.
Ingersoll, the maker of air-conditioning systems and climate-control technologies, announced the split in December after billionaire investor Nelson Peltz pushed for a breakup. Peltz’s Trian Fund Management LP held a 4.5 percent stake in Swords, Ireland-based Ingersoll as of March 31, according to data (IR:US) compiled by Bloomberg.
“It’s really creating the value that we thought we would create in terms of the estimated value,” Lamach said. “You really end up here with a company that, although you’ve got a couple of billion starting revenue, you’ve got enterprise value and market cap that’s double that.”
Allegion, which is also based in Ireland, will have its operating headquarters in Carmel, Indiana. Allegion will have annual revenue of about $2 billion, and employ about 7,600 people in 35 countries, according to a statement today.
Ingersoll rose (IR:US) 0.9 percent to $57.76 at 10:57 a.m. in New York. The shares had gained 19 percent this year through yesterday.
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