Released September 25, 2014 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Germany's industrial giant Siemens AG (NYSE:SI) (Munich, Germany) announced an agreement to buy U.S. oilfield equipment maker Dresser-Rand Group (NYSE:DRC) (Houston, Texas) for $7.6 billion, in a move that would significantly boost the German company's oil and gas business in North America.
The transaction is expected to close by summer 2015, and Siemens has said that it expects to unlock more than $180 million in annual synergies by 2019.
"While the announced offer price of the transaction at $83 per share is higher than our earlier assumption of $81, we maintain that the acquisition makes strategic sense for Siemens," said a representative for the company.
Siemens beat out Sulzer AG (Winterhur, Switzerland), which was said to be eyeing a deal with Dresser-Rand.
Dresser-Rand is one of the largest suppliers of rotating equipment solutions for energy infrastructure, with key products such as centrifugal and reciprocating gas compressors, gas and steam turbines, gas expanders and associated control panels, which typically are used in the oil & gas, petrochemical, power generation and process industries.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The transaction is expected to close by summer 2015, and Siemens has said that it expects to unlock more than $180 million in annual synergies by 2019.
"While the announced offer price of the transaction at $83 per share is higher than our earlier assumption of $81, we maintain that the acquisition makes strategic sense for Siemens," said a representative for the company.
Siemens beat out Sulzer AG (Winterhur, Switzerland), which was said to be eyeing a deal with Dresser-Rand.
Dresser-Rand is one of the largest suppliers of rotating equipment solutions for energy infrastructure, with key products such as centrifugal and reciprocating gas compressors, gas and steam turbines, gas expanders and associated control panels, which typically are used in the oil & gas, petrochemical, power generation and process industries.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
