Siemens has agreed to acquire Dresser-Rand through the acquisition of all its New York Stock Exchange issued and outstanding common shares for us$83/share, in a $7.6 billion deal.
The takeover has been supported by Dresser-Rand's Board of Directors, says Siemens. Dresser-Rand has a portfolio of compressors, steam turbines, gas turbines and engines, supplied to the oil and gas, process, power and other industries in the related energy infrastructure markets worldwide.
Siemens said the acquisition complements its existing offerings, notably for the global oil and gas industry and for distributed power generation.
"Dresser-Rand will become 'The oil and gas' company within Siemens and fit right into our Siemens Vision 2020," said Joe Kaeser, President and CEO of Siemens AG. Siemens expects to close the transaction by summer 2015.
With annual revenues of approximately $3.0 billion (fiscal year 2013) and about 8100 employees, Dresser-Rand, headquartered in Houston, Texas, USA, and Paris, France, has almost 100,000 rotating equipment units installed in more than 150 countries.
Applications covered are high-pressure field injection and oil recovery, gas liquefaction, gas transmission and refinery processes. Additionally, Dresser-Rand offers further technologies for distributed power generation such as reciprocating engines as drives for compressors and power generation, micro LNG solutions.
According to Vincent R. Volpe Jr., CEO and President of Dresser-Rand, "Given the vision Siemens has for Dresser-Rand as its oil and gas company, and its expressed wishes to build Dresser-Rand's product and service portfolio with some of the existing Siemens offerings that have previously been marketed separately into the oil & gas space, it is clear that this is a transaction that should create value for clients, as well as for both sets of shareholders, that would not have otherwise been achieved had Dresser-Rand not become part of the Siemens group. Simply stated, we see this as a unique opportunity to better serve our clients, employees and shareholders and are pleased to have Dresser-Rand placed in the central role for Siemens as it develops its position in oil & gas."
"Our aim is to become the leading rotating equipment and process system integrator for the oil & gas industry. Dresser-Rand has strong presence in oil and gas, a reputation for technology leadership and innovation, and a talented and experienced leadership team. Our intention is to leverage these strengths by maintaining the existing company and brand name and selectively moving complementary products and services from the existing Siemens portfolio into Dresser-Rand enabling us to offer a much broader range of products, services and solutions to meet our customers' needs," said Lisa Davis, member of the Managing Board of Siemens AG.
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