Baker Hughes, a GE company (BHGE) has entered into two separate agreements to sell its Natural Gas Solutions (NGS) business to First Reserve and Pietro Fiorentini for a total sum of $375m.
While First Reserve, a global private equity investment firm, will acquire the Dresser Natural Gas Solutions product line of Baker Hughes, Pietro Fiorentini will buy the GE subsidiary’s Talamona branch of its NGS product line.
Pietro Fiorentini will also acquire a BHGE manufacturing location in Talamona, Italy as part of its deal.
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.”
NGS comes under the Turbomachinery & Process Solutions (TPS) segment of BHGE. The business offers commercial and industrial products like gas meters, chemical injection pumps, electric actuators and pipeline repair products.
BHGE will transfer around 450 employees working across eight countries, including three manufacturing locations in North America and the UK to First Reserve.
The equity investment firm had owned Dresser Natural Gas Solutions for nearly 10 years in the past when it was part of Dresser, its former portfolio company before its sale to GE in 2011.
First Reserve managing director Jeff Quake said: “Our investment in Dresser NGS represents a continuation of First Reserve’s thematic approach to investments targeting the asset integrity sector.
“With our previous knowledge of the business and global network, we are excited to help Dresser NGS grow market share and continue to deliver advanced solutions for its suite of blue-chip utility and other midstream customers. We believe Dresser NGS has a resilient business model, a leading brand, and a global footprint which position the company well for the future.”
First Reserve’s acquisition excludes the business operations and associated clients of Talamona, Dresser Italia.
The two transactions pertaining to BHGE’s Natural Gas Solutions are anticipated to be completed in the second half of this year, provided they meet customary closing conditions and secure appropriate regulatory approvals.