First Reserve Corporation to Acquire Dresser-Rand Company
First Reserve Corporation, a private equity firm specializing in energy industry investments, has agreed to acquire the Dresser-Rand Company business unit of Ingersoll-Rand Company Limited for approximately US$1.2 billion. This is First Reserve’s third acquisition in 2004 and its second billion dollar transaction in the past six months. Dresser-Rand is a supplier of infrastructure equipment, including compressors, turbines and engines, along with related after-market parts and services, to the worldwide energy industry. More than half of Dresser-Rand’s 2003 revenue of approximately US$1.3 billion was related to the sale of after-market parts and services, and 53% was generated outside the United States, according to the company.
The Dresser-Rand acquisition, expected to close in the fourth quarter, will be the first investment made in First Reserve Fund X, a US$2.3 billion private equity fund raised earlier this year. First Reserve’s other recent transactions include the formation of Foundation Coal Holdings, and the acquisition of Halliburton Company’s worldwide surface well testing business.