Doosan Infracore Agrees to Buy Ingersoll – Rand Co.’s Bobcat for $4.9 billion

The largest maker of construction equipment in South Korea, Doosan Infracore, has said that they will be buying Ingersoll- Rand Co.’s Bobcat and other moving-equipment units for $4.9 billion, the country’s biggest overseas acquisition.

Shares in Doosan Infracore rose to a record high on the news.

Doosan Infracore are paying 1.9 times sales, compared with a value of 1.2 times for Caterpillar Inc., the world’s biggest maker of earthmoving machinery.

Doosan Infracore is part of Doosan Group, which gets over $15 billion in annual sales from building power stations and engines as well as operating restaurants and publishing GQ magazine in South Korea.

`The acquisition will help Doosan Infracore become a more globalized company with a worldwide network,” said Song Jae Hak, an analyst at Woori Investment & Securities Co. in Seoul.

What do you think of Doosan Infracore making this purchase?

Source