HOUSTON - Hanover Compressor has agreed to acquire the Dresser-Rand compressor services division from Ingersoll-Rand for $190 million.

Under terms of the deal, half of the amount will be paid in cash and the remainder in newly issued restricted Hanover common stock. The transaction is expected to be finalized in the third quarter.

The Dresser-Rand compressor rental fleet exceeds 240,000 horsepower, averaging more than 800 horsepower per unit. More than one-quarter of those units are operated under long-term contracts outside the United States, according to Hanover.

Hanover also will acquire Dresser-Rand's compressor packaging operations based in Broken Arrow, Okla. All told, the Dresser-Rand acquisitions involved in the sale are expected to generate revenues of more than $175 million this year, Hanover officials said.