Ingersoll Rand To Buy Cameron Intl.'s Centrifugal Compression Unit For $850 Mln

(RTTNews) - Diversified industrial company Ingersoll-Rand plc (IR) has reached a deal to acquire the assets of Cameron International Corp.'s (CAM) Centrifugal Compression division for $850 million. Ingersoll Rand intends to fund the acquisition via. a combination of cash on hand and debt.

The division provides centrifugal compression equipment and aftermarket parts and services for global industrial applications, air separation, gas transmission and process gas. Employing nearly 850 employees and operating from 12 locations, Cameron's Centrifugal Compression segment recorded around $400 million in sales in 2013. Following the deal closure, Ingersoll Rand would welcome the Turbo-Air and MSG brands into the Ingersoll Rand family of brands.

Commenting on this, Michael Lamach, chairman and chief executive stated: "This opportunity expands our Industrial Segment and will be immediately accretive to EPS, EBITDA margins and ROIC."

In a separate press release, Cameron said it projects after tax proceeds from the sale of its Centrifugal Compression business to be about $600 million, and expects the net proceeds to support stock buybacks. The results of operations of the Centrifugal Compression business would be reported as discontinued operations beginning in the third quarter of 2014.

The transaction may close before the year end.