IR Completes Sale of Majority Interest in HPS to AIP

Ingersoll Rand 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.

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As previously announced, 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.

 

AIP 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.

 

Ingersoll Rand selected AIP due to the firm’s successful record of accomplishment in carve-out transactions; their deep experience in the industrial economy, including the upstream oil and gas market; and their emphasis on engineering and operational excellence.

 

We wish continued success to Edward Bayhi, IR’s general manager of HPS and now CEO for the new organization, and his entire team of exemplary employees on this exciting new chapter for their company.

 

Read more at www.irco.com, our public company website.