Ingersoll-Rand (NYSE:IR), the global industrial giant that makes a wide diversity of products -- from golf carts and power tools to air conditioners and thermostats -- announced today in a press release that it plans to spin off its security business. The deal should complete within a year, the company said.

Ingersoll's board of directors, which unanimously approved of the move, believes that splitting into two companies will unlock shareholder value, allowing each entity to focus on what it does best. Ingersoll-Rand will still have 2011 pro forma revenues of about $12 billion, while the smaller new security company will have 2011 pro forma revenues of around $2 billion.

As is often the case in spinoffs, one professed reason for the split was to unlock the security division's growth potential. The new company, which offers both residential and commercial security solutions, is expected to have "strong margins" and "market-leading products," according to the press release. The well-known Schlage brand is one that will be included in the spinoff's portfolio.

The spinoff was just one of the changes Ingersoll-Rand announced today. The company also plans to leverage itself more fully, it authorized a $2 billion share repurchase program, and it increased its quarterly dividend more than 30% to $0.21 per share.

Ingersoll-Rand shares were down a bit more than 1% at the time this article was written. 

John Divine has no positions in the stocks mentioned above. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.

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