Ingersoll Rand Inc., a global provider of mission-critical flow creation and industrial solutions, completed the majority interest sale of its High Pressure Solutions (HPS) Segment to the private equity firm American Industrial Partners (AIP), effective April 1.
Use of Ingersoll Rand Execution Excellence (IRX) accelerated the timeline to complete the complex transaction and enabled Ingersoll Rand to over deliver on its commitment to close in the first half of 2021.
Ingersoll Rand will retain a 45% common equity interest in the business in accordance with the agreement to sell a majority interest in HPS for approximately $300 million, which the company will use to support core, sustainability-oriented growth initiatives.
This transaction significantly reduces Ingersoll Rand’s direct exposure to the upstream oil and gas market to non-material revenue exposure of more than 2% of total expected 2021 revenue.
In addition the High Pressure Solutions Segment is not included in the company’s 2021 guidance; results from the High Pressure Solutions Segment will be reported in discontinued operations for the first quarter of 2021 and comparable prior periods will be recast on a consistent basis; and going forward, the company’s equity method earnings from the High Pressure Solutions Segment will be reported in other income in continuing operations.
Recommended Reading
After Big, Oily M&A Year, Upstream E&Ps, Majors May Chase Gas Deals
2025-01-29 - Upstream M&A hit a high of $105 billion in 2024 even as deal values declined in the fourth quarter with just $9.6 billion in announced transactions.
Energy Transfer’s Lake Charles LNG Closer to FID with Chevron Deal
2024-12-19 - Energy Transfer entered a 20-year agreement to supply Chevron with 2 mtpa of LNG from its Lake Charles LNG export facility, which is awaiting a final investment decision.
Woodside, Chevron Agree to Swap Oil, LNG Assets
2024-12-19 - Woodside and Chevron have entered an agreement that shifts interests in oil, LNG and carbon capture projects with Chevron also paying Woodside $400 million.
Encino's Owner Mulls $7B Sale, IPO of Utica E&P, Sources Say
2025-02-04 - CPP Investments is considering a sale or IPO of Encino Acquisition Partners following January’s IPO of fellow Utica Shale E&P Infinity Natural Resources.
Coterra to Acquire Permian Assets from Franklin, Avant for $3.95B
2024-11-13 - Coterra made its long-awaited move to grow dramatically in the Permian, moving on large portions in New Mexico’s Delaware Basin.