PITTSBURGH Harsco Corp. will sell its infrastructure division to a joint venture with New York-based private equity firm Clayton, Dubilier & Rice LLC, which will combine the assets with Brand Energy & Infrastructure Services Inc.
The Camp Hill, Pa.-based company, which will receive $300 million and a 29-percent stake in the combined company, said it wants to focus on its metals and minerals segment.
"This transaction is the first major step in the strategic transformation of Harsco," president and chief executive officer Patrick Decker said.
The divestment will strengthen the companys balance sheet, simplify its business structure and allow it to allocate money to opportunities that can net higher returns, Decker said. Harsco also plans to explore bolt-on acquisitions and seek organic growth.
"This transaction is aligned with Harscos stated objectives to generate more attractive returns and improve the underlying performance of its businesses, particularly its Metals and Minerals segment," the company said.
Harsco has been working since 2010 to improve its infrastructure business, which hasnt posted a profit since 2009.