The business will be merged with Brand Energy & Infrastructure Services, which CD&R is simultaneously buying from First Reserve.
Harsco will receive $300m in cash and will hold a 29 per cent stake in the combined company, which has an enterprise value of around $2.5bn including $1.7bn of debt. The combined business is expected to have revenues of $3bn with an EBITDA margin in the low double digits in 2013.
Two-third of the company’s revenues will be generated from the energy sector, added Harsco.
CD&R partner Nathan Sleeper said, “We are excited to help build a global leader in both specialized industrial services and infrastructure services.
“We believe that the combined company has a well-positioned global platform, very favorable growth prospects and a deep set of capabilities to serve customers across its diverse end markets.”
In June CD&R-backed company, Envision Healthcare Holdings filed for a $100m IPO.
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