Page 1 of 1
GE to acquire Lufkin
Posted: Mon Apr 08, 2013 9:33 am
by dan_s
General Electric Co. (NYSE: GE) said Monday it will acquire Lufkin Industries Inc., a provider of artificial lift technologies for the oil and gas industry, in a deal valued at $3.3 billion.
Re: GE to acquire Lufkin
Posted: Mon Apr 08, 2013 9:34 am
by dan_s
Lufkin, based in Lufkin, Texas, has operations in Houston, including its International Lifts Systems unit, acquired in 2009.
In a statement, Fairfield, Conn.-based GE said Lufkin (Nasdaq: LUFK) will broaden the artificial lift capabilities of its GE Oil & Gas subsidiary beyond its current focus on electric submersible pumps to the full array of artificial lift technologies. GE Oil & Gas is based in Florence, Italy, with its regional headquarters for the Americas located in Houston.
Lufkin shareholders will receive $88.50 per share in cash for each of their Lufkin shares, the company said.
In a note to investors on Monday, Houston-based Tudor, Pickering & Holt Co. said the deal is a good fit with GE's portfolio but the pricey valuation on Lufkin shares "reinforces why stock market is generally paying up for oilfield manufacturers … if the stock market won't, M&A market will."