Harsco Corporation announced that it would be selling its infrastructure division with Clayton, Dubilier & Rice (CD&R) for USD 300 million. The agreement would merge Harsco's infrastructure unit with Brand Energy & Infrastructure Services. The latter would be acquired by CD&R from First Reserve. The combined firm would have an enterprise value of about USD 2.5 billion. It would do business as Brand Energy & Infrastructure Services. Harsco Corporation would get a 29% stake in the new firm.
Harsco President and Chief Executive Officer Patrick Decker said the deal represented a major step in the company's strategic transformation. "It follows a period of extensive consideration and offers a number of compelling benefits to our shareholders," he said.
One of the benefits of the transaction was the financial strength and flexibility it would give to Harsco. This would enable them to go after higher return, higher growth opportunities. The sale also streamlines their business for greater operating efficiency. Finally, Decker said the equity position they would hold in the new business would give their company added value.
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