Ingersoll Rand Inc. (NYSE:IR), Davidson, North Carolina, on Tuesday said it has agreed to sell a majority interest in its High Pressure Solutions (HPS) Segment to the private equity firm American Industrial Partners (AIP) for $300 million.

Ingersoll Rand will retain a 45% common equity interest in the business. The transaction, subject to standard closing conditions, is expected to be completed in the first half of 2021.

“Today’s transaction is a meaningful step forward in our transformation and achieves many of the goals we have previously communicated,” said Vicente Reynal, CEO of Ingersoll Rand. “It significantly reduces our direct exposure to the upstream oil and gas market to non-material revenue exposure of [less than] 2%, and accelerates our ESG commitments. We are pleased to achieve an attractive valuation for our shareholders with the opportunity to continue to benefit from future economic upside, and secure significant upfront cash that we will use to support growth. After a successful year during 2020 despite the pandemic, we now enter the next phase of our journey with a portfolio focused on core, higher-growth, sustainability-oriented industrial markets, including water, life sciences, and renewable energy, supported by strong secular trends.”

Added Alex Menkhaus, a partner at AIP: “High Pressure Solutions has an outstanding reputation, a history of innovation, a focus on serving its customers and a talented workforce. We are excited to partner with the HPS team to continue to provide our customers with leading technology, quality and service.”