Ingersoll-Rand divests legacy asbestos liability

In a regulatory filing, the company states: “On June 10, 2024, Ingersoll Rand permanently divested all of its legacy asbestos liability by selling its wholly-owned subsidiaries that hold these liabilities and the related insurance assets. The sale was made to Delticus, a leading, institutionally capitalized corporate liability acquisition platform that specializes in acquiring and managing long-tail legacy corporate liabilities. Delticus is owned by entities affiliated with Third Point LLC. At closing, the divested entities were capitalized with a total of $188.5 million, including $143.5 million from insurance settlement proceeds, $35 million from affiliates of Delticus, and $10 million from Ingersoll Rand. In connection with the sale, Ingersoll Rand and its board of directors received a solvency opinion from an independent advisory firm that formed the basis (along with other inputs) for its determination that the divested entities were solvent and adequately capitalized immediately prior to, at the time of, and after giving effect to, the sale. As a result of the transaction, no asbestos liabilities or related insurance assets will be included in Ingersoll Rand’s consolidated year-end 2024 balance sheet. Delticus assumes management of the divested subsidiaries, including the management of their claims and insurance policy reimbursements.”