Cameron said that it had entered into a definitive agreement to sell its Centrifugal Compression business to Ingersoll Rand for cash consideration of approximately US$ 850 million, subject to final adjustments.
The decision to sell its Centrifugal Compression division was made after the Cameron assessed its long-term business strategy to increase the focus on its core markets. The company then set out to identify a buyer more closely aligned with Centrifugal Compression's broad and global markets.
Cameron said it expects to complete the sale of its Centrifugal Compression business before then end of the year, subject to regulatory approval.
Cameron estimates that the sale, after tax proceeds, will bring in approximately US$ 600 million, and expects the net proceeds to support stock repurchases. In 2013, the Centrifugal Compression division had revenues of US$ 396 million. The results of operations of the Centrifugal Compression business will be reported as discontinued operations beginning in the third quarter of 2014.
Jack Moore, Chairman, President and CEO of Cameron, said: "The leadership team at Ingersoll Rand is impressed with the people, technology and performance of the Centrifugal Compression division and sees a strong strategic fit for their business. I'd like to thank our Centrifugal employees for their many contributions to Cameron and wish them well at Ingersoll Rand."
Citi is acting as financial advisor to Cameron and Winston & Strawn and Baker Botts are acting as the company's legal counsel in connection with the divestiture of the Centrifugal Compression business.
Adapted from press release by Ted Monroe
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