GE to buy Dresser Industries for $3 Billion

By on Oct 7, 2010 in Business Comments

General Electric Co. (GE) announced today that it has agreed to buy Dresser Inc., according to a recent press release on their website.

Dresser, a privately-owned energy infrastructure company based on Addison, Texas, was reportedly being sold to GE for $3 billion.

The company is said to be known for products and services, which includes technologies for gas engines, control and relief valves, measurement, regulation and control solutions for gas and fuel distribution

The said purchase of Dresser is the latest acquisition made by GE to expand its energy business, particularly overseas.

This deal is also being considered as the largest industrial acquisition by GE since 2007, after they bought Smiths Group of Britain’s aerospace unit for $4.8 billion.

However, the deal will be subjected to usual closing conditions but is expected to close promptly after receiving regulatory approval.

Last year, it was reported that Dresser has around 6,300 employees, and being operated in over 100 countries, while its revenue was said to have reached $2 billion and had $318 million in earnings.

“Joining the GE family will enhance our company’s capability to provide best-in-class energy technologies to a much broader segment of the energy sector”. Dresser President and CEO John Ryan said.

Meanwhile, vice chairman of GE and president and CEO of GE Energy John Krenicki said that ‘Dresser is a great fit for the GE business model’.

“Eighty-five percent of Dresser’s revenue is from energy customers, and it has developed a large installed base of equipment, which is a big reason why 40 percent of its total revenue is derived from aftermarket service offerings, and there is a lot of room for future expansion.” He added.

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