ANKARA
Siemens AG, one of the world's largest industrial firms, announced Monday that it would acquire Dresser-Rand, a major US oil and natural gas equipment manufacturer supplier in North America for $7.6 billion cash.
The company has entered into an agreement with Dresser-Rand to acquire all of the issued and outstanding common shares of Dresser-Rand with an offer price of $83 per common share in cash, or a total transaction value of approximately $7.6 billion (approximately €5.8 billion), according to statements published by Siemens and Dresser-Rand.
Siemens said its' bid was unanimously supported by Dresser-Rand's Board of Directors and it expects to close the transaction by summer 2015.
The $7.6 billion deal will strengthen Siemens’ existence in oil and gas industry, giving the company a greater regional footprint in North America, in which Dresser-Rand is a major supplier of rotating equipment and aftermarket parts and services. The US has seen a "shale revolution" that turns the country into a net oil and gas exporter from an importer with increased oil and gas production figures, surging demand for oil and gas production equipment.
Siemens will strengthen its existing portfolio with Dresser-Rand's product range, which consists of compressors, steam turbines, gas turbines and engines.
"As the premium brand in the global energy infrastructure markets, Dresser-Rand is a perfect fit for the Siemens portfolio. 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," said Joe Kaeser, President and CEO of Siemens AG.
"We believe that the enhancements in offerings available to us in the form of the existing products and services from the Siemens group will serve as an accelerator for technological innovation, profitable growth and extended opportunities for our employees and the communities around the globe in which we operate," said Vincent R. Volpe Jr., CEO and President of Dresser-Rand.
The transaction might create more than €150 million in annual synergies by 2019, Siemens said.
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