Ingersoll Rand, Inc. (NYSE: IR) disclosed that it has decided to dump the 55% stake in its High-Pressure Solutions (HPS) Division to the private equity firm American Industrial Partners (AIP). After the sale of a 55% stake, Ingersoll will hold the remaining 45% stake in the business. This is the important step of the firm towards the fulfillment of its earlier declared promises.
It has been announced that Ingersoll will get a profit of nearly $300 million for the sale of its 55% stake. The deal will be executed in the first half of 2021 and the execution relies upon the fulfillment of certain necessary conditions.
The reason behind the sale of a stake to AIP is because of the successful past performance, its profound knowledge in the industrial market, plus HPS’s end markets, and its strong focus on engineering and working perfection.
Ingersoll unveiled that the legal advisor to the firm is Simmons Energy and Citi is currently doing a job as special advisor and Kirkland & Ellis LLP is acting as legal counsel. High Pressure Solutions has been recognized for its history of advancement and its commitment towards its consumers and its competent team.
AIP is hoping to serve in the best way to its customers after the purchase of the HPS stake and the team of HPS will assist the firm in achieving its goals. Ingersoll revealed that it has completed the tough period of 2020 successfully and has now entered into the new journey with its main focus on higher growth.
CEO of IR stated that: “We are delighted to be able to accomplish an appealing estimation for our shareholders with the chance to continue to benefit from future economic upside and ensure substantial upfront cash that we are going to utilize to assist expansion.