Vetco Gray sold for $1.9bn

GE today announced that it has entered into an agreement to acquire Vetco Gray for $1.9bn from Candover, 3i and JP Morgan Partners.

GE today announced a major expansion of its presence in the global oil and gas industry, entering into an agreement to acquire Vetco Gray for $1.9bn from Candover, 3i and JP Morgan Partners.

The closing of the transaction, which is subject to conditions including the receipt of governmental, regulatory and other approvals, is expected in early 2007.

Vetco Gray is one of the world’s leading suppliers of drilling, completion and production equipment for on- and offshore oil and gas fields, including subsea applications.

The business, which is expected to generate over $1.6bn of sales in 2006, employs 5,000 people in more than 30 countries, with key centres in Stavanger and Oslo, Norway; Houston, USA; Aberdeen, UK; and Singapore. Major products include flow control valves (known as “Christmas trees”), control systems, wellheads, manifolds, risers and associated after-market services.

Upon completion of the transaction, Candover, 3i and JP Morgan Partners will continue to own Vetco Aibel, which is engaged in the business of design, engineering, construction and maintenance of oil and natural gas production facilities, process systems and related products.