Dresser-Rand will operate as Siemens' oil and gas business under its own brand name, retain its executive team
HOUSTON—German electronics and engineering company Siemens AG has reached a deal to acquire oilfield equipment maker Dresser-Rand Group, Inc. for US$7.6 billion.
Under the deal announced Sept. 22 in Germany, Siemens will pay US$83 per common share of Dresser-Rand, US$3.09 more than the company’s closing share price on Sept. 19.
Dresser-Rand’s market capitalization is US$6.12 billion.
The deal includes the assumption of debt.
Dresser-Rand’s board of directors unanimously recommended the offer to shareholders, and Siemens expects to close the deal by next summer, according to a statement from the company.
Siemens said in a statement that Dresser-Rand’s portfolio of compressors, steam and gas turbines and engines complements Siemens’ existing offerings mainly in the growing global oil and gas and power generation businesses.
Dresser-Rand, based in Houston and Paris, has annual revenue of around US$3 billion and employs about 8,100 people.
Siemens will operate Dresser-Rand as its oil and gas business under the Dresser-Rand brand name and retain its executive team, a Dresser-Rand statement said.
The oil and gas business will be based in Houston and the company will maintain a “significant presence” there, the statement said.
Siemens also announced that Robert Bosch GmbH will buy its 50 per cent stake in a household appliance joint venture between the two companies for US$3.85 billion.
The deal for BSH Bosch und Siemens Hausgerate must still be approved by regulators.
It’s expected to be finished in the first half of next year.
Siemens and Bosch also will each get about US$320 million from BSH before the deal is finished.