Private equity firm KPS Capital Partners LP agreed to acquire Harsco Corp.'s Houston-based industrial unit IKG for $85 million in cash and notes, subject to adjustments after closing.

Harsco is a New York-listed global provider of environmental solutions for industrial waste streams for the rail sector. IKG is the last of the Camp Hill, Pa.-based company's industrial division, after it sold two other units, Harsco Industrial Patterson-Kelley and Air-X-Changers, in 2019.

Harsco will use the net cash proceeds to reduce debt.

RBC Capital Markets LLC is the financial adviser to Harsco, and Squire Patton Boggs is the legal adviser.