Ingersoll-Rand To Buy Cameron Unit For $850 Million

The acquisition will strengthen Ingersoll Rand’s Compressed Air Systems and Services business.

SWORDS, Ireland â€” Ingersoll-Rand plc (NYSE:IR), a world leader in creating comfortable, sustainable and efficient environments, announced Monday it has entered into an agreement to acquire the assets of Cameron International Corporation’s (NYSE:CAM) Centrifugal Compression division for $850 million. The acquisition is expected to close before the end of the year, subject to regulatory approval.

The division provides centrifugal compression equipment and aftermarket parts and services for global industrial applications, air separation, gas transmission and process gas. Cameron’s Centrifugal Compression division generated sales of approximately $400 million in 2013, has approximately 850 employees and operates from 12 global locations. Upon closing of the transaction, Ingersoll Rand will welcome the Turbo-Air and MSG brands into the Ingersoll Rand family of brands.

“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 chief executive officer. “This opportunity expands our Industrial Segment and will be immediately accretive to EPS, EBITDA margins and ROIC.”

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 a variety of 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.

“We are pleased at the prospect of our centrifugal air compressor division joining Ingersoll Rand’s Compressed Air Systems and Services business to offer expansion into efficiency and flow offerings and enable customers to be better served,” said Jack Moore, chairman and chief executive officer of Cameron International Corporation.

Ingersoll Rand plans to fund the acquisition through a combination of cash on hand and debt.

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