American Industrial Partners Signs Agreement to Acquire the High Pressure Solutions Segment of Ingersoll Rand

Rhea-AI Summary

On February 16, 2021, American Industrial Partners (AIP) announced an agreement to acquire a majority interest in the High Pressure Solutions Segment (HPS) of Ingersoll Rand. The acquisition aims to create a standalone business dedicated to high-pressure pump manufacturing and services in the upstream energy market. Completion is expected in the first half of 2021, pending customary conditions. AIP's experience in product development and operational excellence is anticipated to enhance HPS's growth and customer service capabilities.

Positive

• The acquisition allows HPS to operate as a standalone entity, focusing on customer-driven solutions in the upstream oilfield service sector.
• AIP's operational expertise is expected to enhance HPS's product development and supply chain optimization.

Negative

• None.

HOUSTON, Feb. 16, 2021 /PRNewswire/ -- American Industrial Partners ("AIP") announced today the signing of an agreement to acquire a majority interest in the High Pressure Solutions Segment ("HPS" or the "Company") of Ingersoll Rand (formerly part of Gardner Denver's Energy Segment).  The transaction is subject to customary closing conditions and is expected to be completed in the first half of 2021.

AIP was attracted to HPS due to its position as a premier market leader in the manufacturing, service, and repair of high-pressure pumps and related consumables in the upstream energy market.  The completion of the transaction will result in HPS becoming a stand-alone business, enabling the Company to focus its efforts on best serving its customers in the upstream oilfield service sector, while continuing its legacy of delivering highly-engineered and efficient, customer-driven solutions to meet the evolving needs of the market.

"We are excited to partner with the team at HPS to advance the Company's storied history of innovation and commercialization of technologies that enable efficient energy production," said Alex Menkhaus, a Partner at AIP. "AIP brings deep experience in the end markets served, as well as expertise in new product development, supply chain optimization, and operational excellence, and we look forward to working with the Company to continue to build on the strong foundation that exists today."

"This is a great step forward for our organization that will give us the flexibility to continue to serve our customers with innovative products and excellent customer service," said Ingersoll Rand HPS Segment Vice President and General Manager, Edward Bayhi, who will serve as CEO under the new ownership structure. "We value the investment from Ingersoll Rand that built this business into a market leader, and we are enthusiastic about the next phase of growth as a standalone organization enabled through the partnership with AIP."

About AIP
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

About Ingersoll Rand
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. 

 

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SOURCE American Industrial Partners

FAQ

What is the purpose of American Industrial Partners acquiring the High Pressure Solutions Segment of Ingersoll Rand?

The acquisition aims to create a standalone business that can better serve the upstream energy market with a focus on innovative products and customer service.

When is the acquisition of HPS by AIP expected to be completed?

The transaction is expected to be completed in the first half of 2021, pending customary closing conditions.

What impact will the acquisition of HPS have on Ingersoll Rand's operations?

HPS will continue its legacy as a premier market leader, operating independently under AIP's ownership, which may enhance its focus on customer solutions.

Who will lead High Pressure Solutions after the acquisition?

Edward Bayhi, the current Vice President and General Manager of Ingersoll Rand's HPS Segment, will serve as CEO under the new ownership structure.

What advantages does AIP bring to the acquisition of HPS?

AIP offers deep experience in market operations, new product development, and operational excellence, which may help HPS grow and innovate.