German engineering group Bilfinger has sold its Water Technologies division to China’s Chengdu Techcent Environment Group.
The deal should be finalised in the first quarter of 2016, and will earn Bilfinger net proceeds of $220m.
The sale was prompted by Bilfinger’s "strategic repositioning" and portfolio review.
A number of options were considered for the water division, but the final decision was that a sale offered the best results over the long term.
Per Utnegaard, Bilfinger’s executive chairman, said: "We are pleased that our successful water business has found such a financially strong and long-term oriented buyer.
"The move to a company in which water technology is the focus of business operations opens up excellent development prospects for Water Technologies."
The Water Technologies division employs around 1,600 staff and generated an output volume of $330m in 2015.
Last year the engineer adopted new business strategy after making a $81m loss.
Image: Bilfinger’s Mannheim headquarters (Wikimedia Commons)