Siemens acquiring Dresser-Rand
Siemens is acquiring Dresser-Rand for US$7.6 billion, filling out its portfolio of compressors, steam turbines, gas turbines and engines.
The deal, subject to shareholder approval, is expected to be completed by next summer. Siemens will operate Dresser-Rand as its oil and gas business, retaining the Dresser-Rand brand and its executive leadership team. It also will maintain Dresser-Rand’s significant presence in Houston, as the headquarters of the oil and gas business.
“As the premium brand in the global energy infrastructure markets, Dresser-Rand is a perfect fit for the Siemens portfolio. The combined activities will create a world-class provider for the growing oil and gas markets,” said Joe Kaeser, president and CEO of Siemens AG.
With revenues of US$3 billion (fiscal 2013) and 8,100 employees, Dresser-Rand, headquartered in Houston and Paris, has almost 100,000 rotating equipment units installed worldwide.
Dresser-Rand provides products for high-pressure field injection and oil recovery, gas liquefaction, gas transmission and refinery processes. It also offers technologies for distributed power generation such as reciprocating engines as drives for compressors and power generation, micro liquefied natural gas solutions.
Siemens said the portfolio complements its strengths in turbo compressors, downstream and industrial applications and in larger-sized steam turbines. Siemens plans to realize more than €150 million/year in synergies by 2019 as a result of the transaction.