TRENTON - Ingersoll-Rand Co. Ltd. will acquire Trane Inc. in a $10.1 billion deal that would create one of the world's largest makers of air conditioners, the companies announced yesterday.

The deal gives Ingersoll-Rand, which makes Thermo King refrigerated trucks and Hussman refrigeration units, access to Trane's building- and transportation-cooling systems.

Ingersoll-Rand is based in Bermuda, but has its operating headquarters in Woodcliff Lake, N.J. The company already has a significant climate-control business and manufactures a diverse range of other products, including golf carts, home-security systems, industrial tools, and energy systems.

Trane, of Piscataway, N.J., was formerly known as American Standard Cos. Inc. and focuses its business almost exclusively on residential and commercial climate control.

Combining the climate-control operations of Trane and Ingersoll-Rand "creates a very strong business," said Fred Poses, Trane chairman and chief executive officer.

The combined company is expected to have 2008 revenue of $17 billion, slightly more than double the current revenue for each.

"The timing of this combination is close to perfect for both companies," Ingersoll-Rand CEO Herbert Henkel told analysts during a conference call, noting that both companies have made major divestments in recent months that sharpen their focus.

Trane recently sold off its kitchen-and-bath business, as well as its auto-braking-systems business. It is keeping the well-known American Standard brand name for its heating, ventilating and air-conditioning and related products.

The purchase price is about $47.81 per Trane share, nearly a 30 percent premium over Trane's closing price Friday.

Trane shares jumped $8.04 yesterday to $45.24, while Ingersoll-Rand shares dropped $5.58 to close at $43.60.