“Advanced technologies, combined with new drilling practices, are revolutionizing the oil and gas industry. Lufkin’s world-class people, equipment and services fit perfectly in our portfolio and will enable us to offer a wide range of artificial lift solutions to our customers,” Daniel Heintzelman, GE Oil & Gas president and CEO, said in a press release Monday.
Lufkin shareholders will receive $88.50 for each of their shares, reads the press release.
Lufkin CEO John Glick said the global scale GE offers, alongside its service offerings and research center network, will offer new opportunities for Lufkin’s customers and staff across the world.
“This transaction allows us to realize our strategic objectives for expanding both our portfolio and our global platform and will allow us to reach global customers much faster and more effectively than we could have done as a standalone company,” Glick added.
Lufkin employs 4,500 people worldwide. Its Romanian plant was opened in 2012.
The transaction is expected to close in the second half of 2013 once it gets the nod from Lufkin’s shareholders and market regulators.
Lufkin registered revenues of $1.28 billion last year, up 37% from $932 million in 2011. Its net profit rose 24% to $81.8 million in 2012, from $65.9 million.