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Ingersoll Rand Enhances Comprehensive Capital Allocation Strategy Anchored by M&A; Plans to Initiate Dividend and Authorizes New Share Repurchase Program

Published: 2021-09-01 20:31:00 ET

Hosting Capital Allocation Strategy Conference Call on Thursday, September 2, 2021

DAVIDSON, N.C.--(BUSINESS WIRE)-- Ingersoll Rand Inc. (NYSE:IR), a global provider of mission-critical flow creation and industrial solutions, announced today a comprehensive M&A focused capital allocation strategy designed to drive long-term value creation and compound stockholder returns.

With the demonstrated ability to generate free cash flow and nearly $2 billion in proceeds from recent divestitures, the company is focused on deploying capital to continue its transformation to a high growth and margin portfolio powered primarily through organic investments and an M&A focused capital allocation strategy.

Sustained investments in organic growth drivers – such as talent, new product development, aftermarket, demand generation, digitization and sustainability – will remain foundational to extending the company’s competitive advantages and executing on the company’s strategy. Complementing these organic growth investments is the newly enhanced Ingersoll Rand capital allocation framework that includes:

Strategic M&A: M&A remains the focal point of the Ingersoll Rand capital allocation framework. The company has a strong record of executing bolt-on acquisitions that deliver outsized market performance with meaningful synergy realization. Supported by Ingersoll Rand Execution Excellence (IRX), Ingersoll Rand will continue to execute against a robust M&A funnel of strategic, growth-oriented opportunities.

Dividend Program: With a focus on delivering more compelling long-term stockholder returns, the Ingersoll Rand Board of Directors approved the initiation of a $0.02 per share quarterly dividend program. Quarterly declarations of dividends are subject to Board approval and Ingersoll Rand expects to commence the dividend program in fourth quarter 2021.

Share Repurchase Program: The Board also authorized a new share repurchase program of $750 million. The program authorizes Ingersoll Rand to repurchase shares through open market purchases, privately negotiated transactions or otherwise, and to determine the prices, times and amounts. The program does not obligate Ingersoll Rand to acquire any particular amount of common stock, and it may be suspended or terminated at any time at the company’s discretion. The timing and amount of any share repurchases will be based on Ingersoll Rand’s liquidity, general business and market conditions, debt covenant restrictions and other factors, including alternative investment opportunities and Ingersoll Rand’s desire to repay indebtedness.

Maintain Flexible Balance Sheet: The company is committed to maintaining and using its flexible balance sheet over various business cycles with a target net leverage ratio of

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All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.