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AIP acquires Ingersoll Rand’s HPS segment for $300m

Ingersoll Rand Inc has sold its majority stake in its high pressure solutions segment to American Industry Partners.

Ingersoll Rand Inc has sold its majority stake in its high pressure solutions segment to American Industry Partners. The purchase price was about $300 million.

PRESS RELEASE

DAVIDSON, N.C.–(BUSINESS WIRE)–Ingersoll Rand Inc. (NYSE:IR), a global provider of mission-critical flow creation and industrial solutions, completed the majority interest sale of its High Pressure Solutions (HPS) Segment to the private equity firm American Industrial Partners (AIP), effective April 1. Use of Ingersoll Rand Execution Excellence (IRX) accelerated the timeline to complete the complex transaction and enabled Ingersoll Rand to over deliver on its commitment to close in the first half of 2021.

Ingersoll Rand will retain a 45% common equity interest in the business in accordance with the agreement to sell a majority interest in HPS for approximately $300 million, which the company will use to support core, sustainability-oriented growth initiatives.

This transaction significantly reduces Ingersoll Rand’s direct exposure to the upstream oil and gas market to non-material revenue exposure of <2% of total expected 2021 revenue. In addition:

The High Pressure Solutions Segment is not included in the company’s 2021 guidance.
Results from the High Pressure Solutions Segment will be reported in discontinued operations for the first quarter of 2021 and comparable prior periods will be recast on a consistent basis.
Going forward, the company’s equity method earnings from the High Pressure Solutions Segment will be reported in other income in continuing operations

About Ingersoll Rand Inc.
Ingersoll Rand Inc. (NYSE:IR), driven by an entrepreneurial spirit and ownership mindset, is dedicated to helping make life better for our employees, customers and communities. Customers lean on us for our technology-driven excellence in mission-critical flow creation and industrial solutions across 40+ respected brands where our products and services excel in the most complex and harsh conditions. Our employees develop customers for life through their daily commitment to expertise, productivity and efficiency. For more information, visit www.IRCO.com.

About American Industrial Partners
American Industrial Partners is an operationally oriented private equity firm that makes control investments in industrial businesses serving domestic and global markets. The firm has deep roots in the industrial economy and has been active in private equity investing since 1989. To date, AIP has completed over 100 transactions and currently has more than $7 billion of assets under management on behalf of leading pension, endowment, and financial institutions. For more information on AIP, visit www.americanindustrial.com.