Siemens buys Dresser-Rand for $7.6bn
22 Sep 2014
Siemens today announced it was acquiring Dresser-Rand for $7.6 billion (£4.6bn) and aimed to become ”the leading rotating equipment and process system integrator for the oil and gas industry”.
The deal values Dresser-Rand at $83 per share, 37.4% over the company’s closing share price of $60.42 on July 16, the day before speculation in the press appeared regarding interest in Dresser-Rand.
It has been approved by Dresser-Rand’s board of directors but is not expected to close until next summer.
Our aim is to…selectively move complementary products and services from the existing Siemens portfolio into Dresser-Rand
Siemens board member Lisa Davis
Dresser-Rand primarily supplies rotating equipment such as turbines and compressors to the oil & gas industry and other process sectors. Other products include control system software for the automation of rotating equipment and plant, station, process and safety applications.
“Our aim is to become the leading rotating equipment and process system integrator for the oil and gas industry,” said Siemens managing board member Lisa Davis.
”Dresser-Rand has strong presence in oil and gas, a reputation for technology leadership and innovation, and a talented and experienced leadership team. Our intention is to leverage these strengths by maintaining the existing company and brand name and selectively moving complementary products and services from the existing Siemens portfolio into Dresser-Rand, enabling us to offer a much broader range of products, services and solutions to meet our customers’ needs.”
Siemens intends to make Dresser-Rand’s base in Houston the headquarters of its oil and gas business.
Dresser-Rand president and CEO Vincent R. Volpe Jr. said Siemens’ vision for his company to become its oil & gas business 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” would create value for clients and shareholders that “would not have otherwise been achieved had Dresser-Rand not become part of the Siemens group”.
“We are excited about the opportunity to continue on our journey to become the premier supplier of high speed rotating equipment and solutions for this industry,” added Volpe.
