German engineering company Siemens has agreed to acquire US-based oil equipment manufacturer Dresser-Rand for around $7.6bn.
Dresser-Rand delivers rotating equipment solutions to the oil, gas, petrochemical and process industries.
It has manufacturing facilities in the US, the UK, France, Spain, Germany, Norway, India and Brazil.
Siemens plans to operate Dresser-Rand as the company’s oil and gas business by retaining its brand name and executive leadership team.
The company aims to maintain a significant presence in Houston, Texas, which will be its headquarters location for the oil and gas business.
Siemens president and CEO Joe Kaeser said: "As the premium brand in the global energy infrastructure markets, Dresser-Rand is a perfect fit for the Siemens portfolio.
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By GlobalData"The combined activities will create a world-class provider for the growing oil and gas markets.
"With this, Dresser-Rand will become ‘the oil and gas company’ within Siemens and fit right into our Siemens Vision 2020."
The transaction, which is subject to regulatory approvals, is expected to be completed in the summer of 2015.
Dresser-Rand president and CEO Vincent Volpe said: "Given the vision Siemens has for Dresser-Rand as its oil and gas company, and its expressed wishes to build Dresser-Rand’s product and service portfolio with some of the existing Siemens offerings that have previously been marketed separately into the oil and gas space, it is clear that this is a transaction that should create value for clients, as well as for both sets of shareholders, which would not have otherwise been achieved had Dresser-Rand not become part of the Siemens group."
