Siemens to acquire Dresser-Rand for $7.6 billion
Siemens has entered into an agreement with Dresser-Rand to acquire all of the issued and outstanding common shares of Dresser-Rand. The offer price is $83 per common share in cash or a total transaction value of approximately $7.6 billion (approximately €5.8 billion). Dresser-Rand’s Board of Directors has unanimously recommended the offer to Dresser-Rand’s shareholders. Siemens expects to close the transaction by summer 2015.
With its comprehensive portfolio of compressors, steam turbines, gas turbines and engines, Dresser-Rand is a leading supplier for the oil and gas, process, power and other industries in the related energy infrastructure markets worldwide. The acquisition complements Siemens’ existing offerings, notably for the global oil and gas industry and for distributed power generation.
“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 & gas markets. With this, 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.
With annual revenues of approximately $3.0 billion (fiscal 2013) and approximately 8,100 employees, Dresser-Rand, headquartered in Houston and Paris has almost 100,000 rotating equipment units installed in more than 150 countries.
Dresser-Rand’s product portfolio completes Siemens’ offerings with compressors and turbines. 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. This complements Siemens’ offerings in turbo compressors, downstream and industrial applications and in larger-sized steam turbines. Siemens plans to realize more than €150 million in annual synergies by 2019 as a result of the transaction.
“Given the vision Siemens has for Dresser-Rand as its oil & 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,” Vincent R. Volpe Jr., CEO and President of Dresser-Rand, stated.