Summary
Trane Technologies plc (formerly Ingersoll-Rand plc) announced the expected closing of its acquisition of Precision Flow Systems (PFS) on May 15, 2019. This strategic move, initially announced on February 11, 2019, is a significant development for the company. To finance this acquisition, Trane Technologies plc issued $1.5 billion in senior notes on March 21, 2019. The company anticipates this will lead to an approximate $60 million increase in annual interest expense before taxes, with a $47 million impact for the full year 2019 due to the timing of the financing.
Key Highlights
- 1Acquisition of Precision Flow Systems (PFS) expected to close on May 15, 2019.
- 2Acquisition was initially announced on February 11, 2019.
- 3Company issued $1.5 billion in senior notes on March 21, 2019, to fund the PFS acquisition.
- 4Anticipated annualized increase in interest expense of approximately $60 million (pre-tax).
- 5Estimated interest expense impact for 2019 is approximately $47 million.
- 6Company plans to update 2019 guidance in the second quarter earnings call.
Frequently Asked Questions
This filing serves as a Regulation FD disclosure, primarily to announce the expected closing of Trane Technologies plc's (formerly Ingersoll-Rand plc) acquisition of Precision Flow Systems (PFS) and to provide an update on the financing and its expected impact on interest expense.
The acquisition is being financed through the issuance of $1.5 billion in senior notes, which occurred on March 21, 2019.
The company expects an increase in interest expense of approximately $60 million on an annualized basis (before taxes). For the full year 2019, the estimated impact on interest expense is approximately $47 million due to the timing of the financing in March.
Trane Technologies plc intends to update its 2019 guidance, taking into account the Precision Flow Systems acquisition, during its second quarter earnings call.