Harsco Corporation has announced that it has signed a definitive agreement to sell its Gas Technologies business group, Harsco GasServ, to Wind Point Partners, a private equity investment firm with offices in Chicago, Illinois for a total purchase price of $340m.
The terms include $300m payable in cash at closing and $40m payable in the form of an earnout, contingent on the Gas Technologies group achieving certain performance targets in 2008 or 2009.
The transaction is expected to close in the near future and has already received regulatory approval.
Harsco Chairman and CEO Derek C. Hathaway said, “Given our initial announcement in January of our intention to divest the Harsco GasServ business group and the time elapsed since then, it can reasonably be concluded that this has been a long and arduous process, certainly exacerbated by the U.S. ‘credit crunch.’ Notwithstanding the timing, we believe we have accomplished our goals for achieving maximum value for our stockholders in conjunction with finding a suitable new home for this business. We wish the new owners and all of the employees every continuing success.”
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