Cameron has entered into a definitive agreement to sell its Centrifugal Compression business to Ingersoll Rand for cash consideration of approximately $850 million, subject to closing adjustments.
The decision to divest the Centrifugal Compression division was made 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.
Cameron expects to complete the sale of its Centrifugal Compression business prior to year end, subject to regulatory approval. The Company estimates after tax proceeds from the sale to be approximately $600 million, and expects the net proceeds to support stock repurchases. In 2013, the Centrifugal Compression division had revenues of $396 million. The results of operations of the Centrifugal Compression business will be reported as discontinued operations beginning in the third quarter of 2014.
Jack Moore, Chairman, President and Chief Executive Officer of Cameron stated, "The leadership team at Ingersoll Rand is impressed with the people, technology and performance of the Centrifugal Compression division and sees a strong strategic fit for their business. I'd like to thank our Centrifugal employees for their many contributions toCameron and wish them well at Ingersoll Rand."
Citi is acting as financial advisor to Cameron and Winston & Strawn and Baker Botts are acting as the Company's legal counsel in connection with the divestiture of the Centrifugal Compression business.