Ingersoll-Rand is to sell its Dresser-Rand business unit to a fund managed by First Reserve Corporation, a private-equity firm, for $1.2 billion.
Dresser-Rand develops, sells and services large, highly engineered centrifugal and reciprocating compressors, steam and gas turbines, and control systems.
Its energy conversion technologies are used for oil and natural-gas production, refining, chemical and petrochemical processin, natural-gas processing, storage and transportation, and industrial power and energy recovery.
The business itself employs approximately 4,500 people and has manufacturing and service facilities worldwide.
Herbert L. Henkel, chairman, president and chief executive officer of Ingersoll-Rand, said that the business was sold because it did not strategically fit with the company’s core business: Climate Control, Industrial Solutions, Infrastructure, and Security and Safety.
For the six months ended June 30, 2004, Dresser-Rand reported revenues of approximately $447 million and operating earnings of $25.2 million.
The sale, which is subject to government regulatory approvals and other customary closing conditions, is expected to close in the fourth quarter of 2004.