Cameron Sheds Centrifugal Compression Business

NEW YORK (The Deal) -- As part of its promise to streamline operations, Cameron International (CAM) said Monday it agreed to sell its centrifugal compression business to Ingersoll-Rand (IR) for $850 million.

The unit makes and provides services for centrifugal compressors in several industries around the world. It generated almost $400 million in sales last year and was expected to have Ebitda of $80 million next year. It employs 850.

Swords, Ireland-incorporated Ingersoll-Rand, which has its executive offices in Davidson, N.C., said separately that the acquisition will immediately boost earnings per share, Ebitda margins and return on invested capital and expand its compression offerings into air separation, petrochemicals, chemicals and process gas. It plans to fund the deal with cash on hand and debt.

"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," Ingersoll-Rand chairman CEO Michael Lamach said in a statement.

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Cameron Sheds Centrifugal Compression Business