Ingersoll-Rand to buy Cameron's compression business unit for $850 million

Ingersoll-Rand PLC said Monday that it has agreed to buy the centrifugal compression business from Cameron International Corp. for $850 million, as it looks to grow its compression business.

The business makes equipment and parts that separates air, transmits gas and processes gas. It had revenue of about $400 million last year, the companies said.

The deal is expected to close by the end of the year.

Ireland-based Ingersoll-Rand, which makes air conditioning systems, parts and other products, said the business will increase its earnings per share immediately after the deal closes.

Cameron, which is based in Houston, said it is selling the compression business to focus on making equipment for the oil industry. It will use proceeds from the sale to repurchase stock.