With the credit crunch and the cooling of private equity, the M&A space has been fairly meager lately. But today, we got some good news (at least for deal junkies) -- Ingersoll-Rand (NYSE: IR) has agreed to pay $10.1 billion for Trane (NYSE: TT).

Ingersoll-Rand, founded in 1871, is a major diversified industrial company, with brands like Club Car golf cars, Hussmann stationary refrigeration equipment, and Schlage locks. And with the Trane deal, the company will boost its large climate control business, making it the #2 player behind United Technologies.

Funny enough, it seems that Trane was trying to market itself to private equity buyers by selling off divisions and streamlining divisions. But of course, such a company can also be attractive to a strategic buyer – especially as global markets remain highly competitive.

With the Trane deal, Ingersoll-Rand will have $17 billion in revenues and $2 billion in EBIT (earnings before interest and taxes).

Yet, Wall Street is a bit skeptical, with Ingersoll-Rand's stock price down 7%. Trane's stock, on the other hand, is up 23%.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.