Ingersoll-Rand has said it is looking to sell its Bobcat subsidiary and other construction equipment businesses, including the Utility Equipment and Attachments operations, saying they no longer fit the company’s long-term strategy. The company says that if it can't find a buyer for the businesses, it may spin them off to its shareholders.

These businesses collectively generated some US$2.6 billion in revenues in 2006.However, Ingersoll Rand said last year that Bobcat's profits had suffered due to the decline in US housebuilding

Herbert L. Henkel, Ingersoll Rand chairman, president and chief executive officer, said that the examination of the strategic alternatives for the businesses are part of “the strategic repositioning of Ingersoll Rand away from the capital-intense, heavy-machinery profile of the company's past and toward a true diversified industrial company.”

Ingersoll Rand plans to use the proceeds of the sale to increase its previously announced share repurchase programme. The company has annonced it will expand its repurchase programme from US$ 2 billion to US$ 4 billion.

"Our strong operating cash flow, the proceeds we generate from a sale or spin-off of businesses, and our strong balance sheet allows us to continue to pursue growth through strategic acquisitions," Mr Henkel said.

"At the same time, the board's approval of an expanded share repurchase programme provides the flexibility to deploy prospective proceeds to enhance shareholder value," he added.

Earlier this year Volvo acquired Ingersoll Rand’s road-building equipment unit for US$1.3 billion.

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