The
sale is expected to close in the fourth quarter, pending normal regulatory
approvals and closing conditions. Shareholder approval is not required. The
company said it will use the sale proceeds to repurchase common stock and
reduce debt to keep the company at investment-grade standards.
In
early June, The
Associated
Press
reported that Standard & Poor’s Ratings Services would consider lowering
its “BBB” corporate credit rating for American Standard Cos. Inc. to “BBB-” if
the company were to go through with its plan to break up into three separate
companies. The reason: The new company (to be renamed Trane after its flagship
air-conditioning brand) “would have a weaker business risk
profile and its proposed capital structure would be more in line with the
‘BBB-’ rating.”