Ingersoll-Rand Company Limited, a world leader in creating and sustaining safe, comfortable and energy efficient environments, on March 5 announced that its board of directors has approved a reorganization of the company from Bermuda to Ireland.
The first step in this reorganization is the establishment of Ingersoll Rand's tax residency in Ireland. Ingersoll Rand shareholders will then be asked to vote in favor of completing the reorganization at a shareholders meeting. If conditions are satisfied, including approval by Ingersoll Rand's shareholders and the Supreme Court of Bermuda, it is expected that Ingersoll-Rand plc, an Irish incorporated company, will replace Ingersoll-Rand Company Limited as the group’s ultimate parent company.
“We considered a full range of options and locations for the company and decided on Ireland based on the company’s business activities in Ireland, its membership in the European Union, its common law-based legal system and its stable business, legal and regulatory environment,” said Herbert Henkel, chairman and chief executive officer of Ingersoll Rand. “We believe our shareholders will be well served by this decision which provides us with many financial, strategic and operational benefits.”
Ireland is an important part of Ingersoll Rand’s operation and the company has approximately 700 employees in Ireland employed in manufacturing, sales and corporate roles. Ingersoll Rand’s Thermo King business has a major manufacturing site in Galway and many of the company’s European Region shared services are based in Dublin.
In addition to its stable business, legal and regulatory environment, Ireland enjoys strong relationships as a member of the European Union. Ireland also enjoys a long history of international investment and a good network of tax treaties with the United States, the European Union and several other countries where Ingersoll Rand has major operations.
Ingersoll Rand does not expect a material impact on its financial operations or anticipate changes to its day-to-day operations as a result of this decision. Ingersoll Rand will, upon completion of the reorganization, continue to be subject to United States Securities and Exchange Commission (SEC) reporting requirements, and Ingersoll Rand's shares will continue to be listed on the New York Stock Exchange.
