Ingersoll-Rand to buy Cameron centrifuge unit for $850 million
08/18/2014 10:23 AM
08/18/2014 4:56 PM
Ingersoll-Rand, the Ireland-based industrial technology firm with North American headquarters in Davidson, said Monday it is buying Cameron International’s centrifugal compression unit for $850 million.
Ingersoll-Rand, which employs nearly 2,000 people in its Davidson and Charlotte offices, expects to close the acquisition before year’s end.
The purchase should boost earnings per share in 2015, Ingersoll-Rand said in a statement. Cameron’s Houston-based compression unit had sales of about $400 million in 2013 and employs about 850 workers in a dozen locations worldwide.
It wasn’t immediately clear whether the acquisition would have any impact on the size of Ingersoll-Rand’s Charlotte-area footprint. A spokesperson for the company’s local operations didn’t return a call seeking comment.
Ingersoll-Rand, which makes Trane air conditioners and an array of other products, said the deal broadens its portfolio of compression products and offers it access to fast-growing power generation and process gas applications.
CEO Michael Lamach said it would immediately add value to the company’s earnings per share and called it “a natural fit into our core business.”
The company is paying for the acquisition with a combination of cash on hand and debt.
Cameron said in a statement that it moved to sell the unit “after a careful review of Cameron’s long-term business strategy to increase its focus on its core markets. The company’s goal has been to identify a buyer that is more closely aligned with centrifugal compression’s broad and global markets.”
Ingersoll-Rand stock closed at $62.18, up nearly 3 percent.
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