German engineering giant Siemens said it has entered into an agreement to buy Dresser-Rand, a U.S. oil, gas and small-scale LNG equipment maker.
Siemens’ bid was unanimously supported by Dresser-Rand’s Board of Directors. The offer price is $83 per common share in cash, or a total transaction value of approximately $7.6 billion (about €5.8 billion).
“With its comprehensive portfolio of compressors, steam turbines, gas turbines and engines, Dresser-Rand is a leading supplier for the oil & gas, process, power and other industries in the related energy infrastructure markets worldwide. The acquisition complements Siemens’ existing offerings, notably for the global oil & gas industry and for distributed power generation,” Siemens said in a statement.
With annual revenues of approximately $3.0 billion (fiscal 2013) and approximately 8,100 employees, Dresser-Rand, headquartered in Houston, Texas, USA, and Paris, France, has almost 100,000 rotating equipment units installed in more than 150 countries.
“Dresser-Rand’s product portfolio completes Siemens’ offerings with compressors and turbines. Applications covered are high-pressure field injection and oil recovery, gas liquefaction, gas transmission and refinery processes. Additionally, Dresser-Rand offers further technologies for distributed power generation such as reciprocating engines as drives for compressors and power generation, micro LNG solutions.
This complements Siemens’ offerings strengths in turbo compressors, downstream and industrial applications and in larger-sized steam turbines. Siemens plans to realize more than €150 million in annual synergies by 2019 as a result of the transaction,” Siemens added.
LNG World News Staff, September 22, 2014; Image: Dresser-Rand