Cameron, a flow equipment products and services company, sold its centrifugal compression business Tuesday to Ireland-based Ingersoll Rand for approximately $850 million in cash.
Houston-based Cameron decided to divest from its centrifugal compression division after reviewing its long-term strategy and deciding to focus on its core markets in the oil and gas industries.
The deal is expected to close before the end of 2014 and is still subject to regulatory approval.
Cameron expects after tax proceeds from the sale to be approximately $600 million.
The net proceeds will support stock repurchases.
In 2013, the centrifugal compression division had revenues of $396 million.
Centrifugal compressors create high-pressure energy by accelerating the flow of air or gasses through a compressor with rotor blades.
The centrifugal compression business’s operations results will be reported as discontinued operations starting in the third quarter of 2014.
In June, Cameron sold its reciprocating compression unit to General Electric for $550 million.