Gardner Denver to Combine With Ingersoll’s Industrial Division

Gardner Denver Holdings Inc. has agreed to merge with Ingersoll-Rand Plc’s industrial division, creating the second-largest maker of pumps and compressors at a time when manufacturers are grappling with a slowdown in China and Europe and higher raw-material costs.

The transaction will give Gardner Denver shareholders 49.9 percent of the shares of the newly created company, while IR holders will get 50.1 percent, according to a statement on April 30. The deal will include Ingersoll Rand’s pending acquisition of Precision Flow Systems.

The combined businesses would create a stronger competitor for industry leader Atlas Copco AB, which has grown through ...