Baker Hughes Divests Gas Solutions Arm
Baker Hughes (BHGE) said July 18 it had agreed to sell its 'natural gas solutions' business in two parts to US private equity firm First Reserve and Italy's Pietro Fiorentini for a combined value of $375mn.
The business being divested manufactures commercial and industrial products such as gas meters, chemical injection pumps, pipeline repair products and electric actuators.
The divestment to First Reserve is larger and will involve transfer of some 450 employees in eight countries, including three manufacturing sites in North America and the UK. The sale to Fiorentini involves 40 employees and a manufacturing site in Talamona, Italy.
Last month GE, which owns 62.5% of BHGE, said it plans to offload its entire equity stake over the next two to three years, as part of a radical restructuring by GE of itself announced January 2018 to cover an anticipated $15bn shortfall in reserves out to 2024.