Baker Hughes, a GE company (BHGE) has signed a $375m agreement to divest its Natural Gas Solutions (NGS) business to two separate entities.
Under the terms of the first transaction, BHGE will sell its NGS product line to global private equity investment firm First Reserve.
Meanwhile, the second transaction will see Pietro Fiorentini acquiring the Talamona branch of BHGE’s NGS product line.
The first transaction includes the transfer of around 450 BHGE employees located in eight countries, including three manufacturing sites in North America and the UK, while the second involves the transfer of 40 employees and a manufacturing site in Talamona, Italy.
NGS is part of BHGE’s turbomachinery and process solutions (TPS) segment.
The products offered by NGS include gas metres, chemical injection pumps, pipeline repair products and electric actuators.
The sale is in line with the company’s continuous evaluation of its portfolio to maximise value for 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.”
Subject to customary closing conditions and appropriate regulatory approvals, the completion of the transactions is slated for the second half of this year.
Last month, GE unveiled plans to undertake an orderly separation of BHGE and shift focus to its aviation, power and renewable energy businesses.
