GE Buys Dresser for $3 Billion
Addison, Tex.-based Dresser had revenues of $2 billion and earnings of $318 million in 2009. Dresser's portfolio includes technologies for gas engines, control and relief valves, measurement, regulation and control solutions for gas and fuel distribution.
"Dresser's technology complements our existing gas engine portfolio and adds offerings complementary to those of GE in the $45 billion flow technology industry, including product offerings in the highly engineered valve segment," said John Krenicki, chief executive of GE Energy in a statement.
Dresser's portfolio will expand GE's core energy offerings and extend its reach into adjacent offerings, GE said. And with 85% of Dresser's revenue coming from energy customers, and 40% of its total revenue from aftermarket service offerings, "there is a lot of room for future expansion," Krenicki said.
"Dresser has a global franchise and brand with 60% of revenues outside of North America, which will be accelerated by GE's global footprint," Krenicki added.
GE's energy infrastructure generated over $37 billion in revenue in 2009 out of GE's $156.8 billion revenue, but its contribution to earnings was far more than a third.
Barclays Capital was GE's financial advisor on the deal. A closing date wasn't provided. Regulatory approval is pending.