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Pump manufacturer Gardner Denver undefined  confirmed Tuesday it will combine its business with part of Ingersoll-Rand (IR) , which also makes pumps, to create a new company worth $15 billion.

The cash-and-stock deal, which is expected to be tax free is also "expected to generate significant value for both Ingersoll-Rand and Gardner Denver shareholders," said Gardner in a statement Tuesday.

The transaction will create a global leader in mission-critical flow creation and industrial technologies, and accelerate both companies' strategic priorities of deploying talent, driving growth, expanding margins through increased efficiencies and allocating capital effectively," said Vicente Reynal, Gardner Denver's CEO.

The deal is expected to close by early 2020 and eventually generate $250 million a year in cost saving synergies. The new company will have revenue of $6.6 billion.

Shares of Gardner rose 4.8% on Tuesday to $34.12. 

Constable owns none of the securities listed in this story.