Ingersoll Rand To Acquire Cameron’s Centrifugal Compression Division
Broadens portfolio of compression products, services; follows GE acquisition of Cameron’s Reciprocating Compression division
Ingersoll Rand has entered into an agreement to acquire the assets of Cameron International Corp.’s (CAM) Centrifugal Compression division for US$850 million. The acquisition is expected to close before the end of the year, subject to regulatory approval.
The division provides centrifugal compression equipment and aftermarket parts and services for global industrial applications, air separation, gas transmission and process gas. Cameron’s Centrifugal Compression division generated sales of approximately US$400 million in 2013, the company said.
This announcement comes on the heels of GE’s January announcement of its US$550 million acquisition of Cameron’s Reciprocating Compression division. Houston, Texas, U.S.A.-based Cameron said the division provides reciprocating compression equipment and aftermarket parts and services for oil and gas production, gas processing, gas distribution and independent power industries. It generated sales of approximately US$355 million in 2012, has approximately 900 employees and operates from 20 global locations. GE Oil & Gas said that this deal will enhance its distributed gas portfolio, and expand servicing and manufacturing capabilities in gas production, processing and distribution sectors
Ingersoll Rand said this current acquisition will strengthen its Compressed Air Systems and Services business, which provides a wide range of centrifugal, reciprocating and rotary air compressor products used in a variety of industrial and manufacturing applications. Cameron’s Centrifugal Compression division will also expand Ingersoll Rand’s compression offerings into areas such as air separation, petrochemical, chemical and process gas. Upon closing of the transaction, the company will welcome the Turbo-Air and MSG brands into the Ingersoll Rand family.
Ingersoll Rand said it plans to fund the acquisition through a combination of cash on hand and debt.