GE is to acquire Lufkin Industries, a provider of artificial lift technologies for the oil and gas industry and a manufacturer of industrial gears, for approximately $3.3bn.
Lufkin shareholders will receive $88.50 per share in cash for each of their Lufkin shares.
Artificial lift, used in 94 per cent of the roughly one million oil-producing wells around the world, helps lift hydrocarbons to the surface in reservoirs with low pressure and improves the efficiency of naturally flowing wells.
Upon close, Lufkin will broaden GE Oil & Gas’ artificial lift capabilities beyond electric submersible pumps (ESPs) to include rod lift, gas lift, plunger lift, hydraulic lift, progressive cavity pumps and a sophisticated array of well automation and production optimization controls and software.
The ESP category of artificial lift is the only lift segment in which Lufkin does not currently compete.
Headquartered in Lufkin, Texas, with approximately 4,500 employees in more than 40 countries, Lufkin manufactures and services a portfolio of artificial lift equipment through a global network of more than 110 service centers and nine manufacturing facilities.