LONDON & HOUSTON--(BUSINESS WIRE)--Jul. 18, 2018--
Baker Hughes, a GE company (NYSE: BHGE) today announced 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
The transactions consist of the following:
BHGE has agreed to sell its NGS product line to First Reserve, a leading
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 has 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. BHGE will work closely with the buyers to ensure a seamless
transition for impacted employees, customers and suppliers. Financial
terms of the individual agreements were not disclosed.
J.P. Morgan served as lead financial advisor and Jones Day served as
legal counsel to BHGE on this transaction.
About Baker Hughes, a GE company
Baker Hughes, a GE company (NYSE: BHGE) is the world’s first and only
fullstream provider of integrated oilfield products, services and
digital solutions. We deploy minds and machines to enhance customer
productivity, safety and environmental stewardship, while minimizing
costs and risks at every step of the energy value chain. With operations
in over 120 countries, we infuse over a century of experience with the
spirit of a startup – inventing smarter ways to bring energy to the
world. Visit us at BHGE.com.
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Source: Baker Hughes, a GE company
Baker Hughes, a GE company
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