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Ingersoll-Rand plc (NYSE: IR), Swords, Ireland, has agreed to acquire the assets of Cameron International Corp.’s (NYSE: CAM) centrifugal compression division for $850 million.
“Cameron’s Centrifugal Compression division offers complementary product, manufacturing and engineering strengths as well as financial synergies that make it a natural fit into our core business and will provide meaningful value to our shareholders,” said Michael W. Lamach, chairman and CEO of Ingersoll-Rand. “This opportunity expands our industrial segment and will be immediately accretive to EPS, EBITDA margins and ROIC.”
The Cameron division provides centrifugal compression equipment and aftermarket parts and services for global industrial applications, air separation, gas transmission and process gas. It generated sales of approximately $400 million in 2013, has 850 employees and operates from 12 global locations. Ingersoll Rand will retain the Turbo-Air® and MSG® brands.
The acquisition will strengthen Ingersoll Rand’s compressed air systems and services business, which provides a wide range of centrifugal, reciprocating and rotary air compressor products used in 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.