Nelson Peltz Joins Ingersoll-Rand Board

In order to avoid a proxy fight, Ingersoll-Rand PLC (NYSE: IR) has named activist investor Nelson Peltz to its board of directors. Eleven of those board members, including Peltz, are independent directors. Peltz will also join the corporate governance and nominating committee and the finance committee of the board, which will expand to 12 directors.

Mike Lamach, Ingersoll-Rand’s CEO, said: “Following discussions with Trian Partners over the past few months, we have concluded that Nelson would be a valuable addition to Ingersoll-Rand’s board. We welcome his perspective and ideas as we work towards our shared goal of enhancing value for our shareholders.”

Peltz, who is chief executive officer and founding partner of Trian Fund Management, is one of Ingersoll-Rand’s largest shareholders. He said the company has “great businesses and tremendous potential” and added he’ll be focused on “strategic opportunities to drive growth.”

Peltz has been an advocate of corporate splits as a way to unlock value, most notably in 2008, when he pressed Cadbury Schweppes to spin off its beverage businesses.

Ingersoll-Rand is a conglomerate whose manufactured brands include Thermo King, Kryptonite locks and Club Car golf carts. The company is headquartered in Dublin, Ireland.

Ingersoll-Rand shares closed at $45.00 on Friday, in a 52-week range of $25.86 to $45.62. Analysts polled by Thomson Reuters had a mean price target of just $45.21 before this announcement.