Ingersoll Rand has announced that it is selling its Club Car golf cart and utility vehicle brand to private equity firm Platinum Equity for $1.68 billion.
The sale expected to be completed by the third quarter of 2021, subject to conditions.
“Today’s announcement to divest Club Car demonstrates swift progression on our transformation journey,” said Vicente Reynal, chief executive officer of Ingersoll Rand. “The Club Car divestiture achieves a premium valuation for the leader in the golf, commercial and consumer low-speed vehicle market.
“We are excited about future opportunities to create long-term value for stockholders with the cash from the transaction, including significant investment into our core business segments as we advance our growth strategies and expand our addressable market.”
Ingersoll Rand selected Platinum Equity because of its financial, operational and marketing expertise, as well as its focus and interest in the automotive industry and mobility trends. Platinum is an ideal fit for Club Car and will serve as a strong partner in driving long-term, sustainable growth for the business.
“Club Car has a long history of leadership in golf, utility and consumer low-speed vehicles, and we look forward to nurturing their core business and supporting the diverse needs of the company’s customers,” said Tom Gores, chairman and chief executive officer of Platinum Equity. “We are excited to partner with the Club Car team and support the business as it executes on its strategy of operational excellence and ongoing, profitable commercial growth.”