Ingersoll Rand Inc. has entered into an agreement to sell its Specialty Vehicle Technologies Segment - known as Club Car - to the global private equity firm Platinum Equity.

The all-cash transaction is valued at $1.68 billion, which is approximately 12.1 x 2020 Specialty Vehicle Technologies Segment Adjusted EBITDA, and is expected to be completed by the third quarter of 2021, subject to customary closing conditions.

Vicente Reynal, chief executive officer of Ingersoll Rand said, “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 organic and inorganic investment into our core business segments as we advance our growth strategies and expand our addressable market."

Ingersoll Rand say they selected Platinum Equity because of their financial, operational and marketing expertise as well as their focus and interest in the automotive industry and mobility trends.

Tom Gores, chairman and chief executive officer of Platinum Equity, said, “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.”