Baker Hughes to sell gas solutions unit for $375 million
Baker Hughes, a GE company, has made an agreement to sell its Natural Gas Solutions (NGS) business to two separate entities, First Reserve and Pietro Fiorentini S.p.A., for a combined value of $375 million.
NGS is part of BHGE’s Turbomachinery & Process Solutions (TPS) segment, providing commercial and industrial products such as gas meters, chemical injection pumps, pipeline repair products and electric actuators.
BHGE informed on Wednesday it had agreed to sell its NGS product line to First Reserve, a global private equity investment firm, focused exclusively on energy. This transaction includes the transfer of approximately 450 employees located in eight countries, including three manufacturing sites in North America and the United Kingdom.
In a separate transaction, BHGE said it had agreed to sell the Talamona branch of its NGS product line to Pietro Fiorentini S.p.A. The transaction includes the transfer of approximately 40 employees and a manufacturing site in Talamona, Italy.
“We’re continuously evaluating our portfolio to maximize value for all stakeholders,” BHGE Chairman and CEO Lorenzo Simonelli said.
“We have found the right buyers for the NGS business, at an attractive valuation. We know our customers and employees are in good hands with both First Reserve and Pietro Fiorentini. Going forward, we will continue to evaluate our portfolio to best deliver for our customers and achieve our financial priorities of expanding margins, increasing market share and outperforming on cash generation.”
Both transactions are expected to close in the second half of 2018, subject to customary closing conditions and appropriate regulatory approvals. Financial terms of the individual agreements were not disclosed.
It is also worth reminding that GE recently revealed its plans to divest its equity ownership position in Baker Hughes, only a year after acquiring it.