Baker Hughes, a GE company (BHGE) has reached an agreement to sell its Natural Gas Solutions (NGS) business to private equity investment firm First Reserve and Italy’s Pietro Fiorentini SpA, for US$375 million.
NGS is part of BHGE’s Turbomachinery & Process Solutions segment, providing commercial and industrial products such as gas meters, chemical injection pumps, pipeline repair products and electric actuators.
BHGE has agreed to sell its NGS product line to First Reserve. The deal includes the transfer of around 450 employees in eight countries, including three manufacturing sites in North America and the UK.
In a separate transaction, BHGE is selling the Talamona branch of its NGS product line to Pietro Fiorentini. This transaction includes the transfer of approximately 40 employees and a manufacturing site in Talamona, Italy.
“We have found the right buyers for the NGS business, at an attractive valuation,” said BHGE chairman and CEO Lorenzo Simonelli. “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.