[NEW YORK] Ingersoll Rand Inc. is nearing a deal to sell its golf cart business to Platinum Equity for around US$1.7 billion, Reuters reported, citing people familiar with the matter. The deal could be announced as early as Monday, it said.
Platinum Equity, controlled by billionaire Tom Gores, is seeking the deal in anticipation of a rebound in golf as a recreational sport following the pandemic, Reuters said.
The Davidson, North Carolina-based company's Club Car golf, utility and consumer low-speed vehicles unit reported 2020 revenue of US$246 million, up 9 per cent from the previous period, according to its Feb 22 earnings statement. The increase was "driven by continued strength in consumer vehicles, as well as growth in golf and after market product offerings," according to the statement.
An after-hours telephone call to Ingersoll Rand wasn't answered, and Platinum Equity didn't immediately respond to an email request for comment.
Golf still remains a popular sport even as the outbreak kept people away from courses. Earlier on Sunday, Hideki Matsuyama won the Masters Tournament by one shot, becoming the first Japanese to claim one of the four majors in men's golf on the lush fairways and manicured greens at Augusta National in Georgia.
Platinum Equity last month kicked off a US$4 billion debt sale to help fund its acquisition of supply chain company Ingram Micro Inc amid an up tick in leveraged buyout activity.