Doosan Infracore to Acquire Bobcat, the World’s Largest Compact Construction Equipment Company

Signs definitive agreement to acquire three world-leading businesses, including Bobcat, Utility Equipment and Attachments, of Ingersoll-Rand Company Limited

Deal valued at US$4.9 billion, the largest overseas acquisition in Korea’s history

Paving the way toward becoming a global top 5 company in the construction equipment sector


Doosan Infracore has agreed to acquire Bobcat, the world’s largest compact construction equipment business, positioning Doosan Infracore as one of the top seven global construction equipment companies.

On July 29, 2007 U.S. EST, Doosan Infracore announced that it entered into a definitive agreement to acquire three businesses of Ingersoll-Rand Company Limited (Ingersoll Rand), comprising the Bobcat compact equipment business (Bobcat), the utility equipment business (Utility Equipment), and the attachments business (Attachments), for US$4.9 billion. The signing took place in New York City and was attended by Vice Chairman Yongmaan Park of Doosan Infracore and Chairman, President and Chief Executive Officer Herbert L. Henkel of Ingersoll Rand.

The Bobcat, Utility Equipment and Attachments businesses have an established network of over 2,700 dealers in the U.S. and Europe and operate 16 manufacturing plants in six countries around the globe. In 2006 the three businesses generated approximately US$2.6 billion in sales and US$370 million in operating profits and currently maintain the highest world market share in their respective business sectors. The “Bobcat” name is well recognized worldwide as a leading construction equipment brand.

Doosan Infracore’s primary objective of the acquisition is to enhance its overall product portfolio by adding compact construction equipment to its existing medium and large-scale construction equipment product lines and to help expand and strengthen Doosan Infracore’s global manufacturing and sales networks. The acquisition also provides Doosan Infracore with world-class technologies and brand names.

Upon completion of this transaction, Doosan Infracore will have a combined network of over 3,700 dealers worldwide and 20 manufacturing plants in countries such as the U.S., China, Belgium, France and the Czech Republic. As a result, Doosan Infracore will be well positioned to become a market leader in the U.S., Europe, and China. Pro forma for the transaction, Doosan Infracore’s sales will be approximately US$7.4 billion, which will improve the Company’s worldwide ranking from 19th to 7th in the construction equipment sector.

It is also Doosan Infracore’s objective to secure world-class talent and R&D capability. The acquired businesses are already considered to be leading global companies and Doosan Infracore intends to run the businesses with the current management and employees going forward.

Yongmaan Park, the Vice Chairman of Doosan Infracore, commented, “The businesses we are acquiring have outstanding management personnel and engineers, which we consider to be the most important criteria of our acquisition strategy. We therefore plan to maintain the current management to best utilize their expertise and skills in an effort to evolve Doosan Infracore into truly a global company.” Vice Chairman Park added that, by making maximum use of synergies from the acquisition of Bobcat, Doosan Infracore will endeavor to rank in the top 5 globally in construction equipment by 2010.

As part of its global vision, Doosan Infracore has continuously pursued and completed significant overseas M&A transactions. Recently completed transactions include the acquisition of a Chinese manufacturer of wheel loaders and CTI, a U.S. company specializing in environmentally-friendly engine technologies.

A majority of the financing for this acquisition is being arranged on a target level basis, non-recourse to Doosan Infracore and as a result Doosan Infracore will be assuming US$700 million in incremental indebtedness to complete the transaction.

Citi acted as financial advisor and Kim & Chang and Paul & Weiss acted as legal advisors to Doosan Infracore in this transaction. Debt financing will be arranged by the Korea Development Bank.