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.
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