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
China Not Continuing Mega Oil-backed Loans to Latin America
2024-06-18 - China, which lent around US$120 billion to Latin America and the Caribbean between 2005-2023, isn’t expected to resume the mega oil-backing loans of yesteryear as the focus turns to debt negotiations.
Halliburton Working to Assess Cause, Impacts of Cyberattack
2024-08-22 - A Halliburton spokesperson said the company had activated a response plan and was working internally and with external experts to remediate the “issue.”
Upstream, Midstream Dividends Declared in the Week of July 8, 2024
2024-07-11 - Here is a selection of upstream and midstream dividends declared in the week of July 8.
Solaris Stock Jumps 40% On $200MM Acquisition of Distributed Power Provider
2024-07-11 - With the acquisition of distributed power provider Mobile Energy Rentals, oilfield services player Solaris sees opportunity to grow in industries outside of the oil patch—data centers, in particular.
Trio Chairman Robin Ross Named CEO Less Than a Month After Return
2024-07-15 - Robin Ross, who last month returned to Trio Petroleum as board chair, has been named CEO while predecessor Michael Peterson will remain as a consultant.