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Dresser-Rand To Acquire Grupo Guascor

Posted on March 4, 2011

Dresser-Rand Group Inc., a global supplier of high-speed rotating equipment and service products, has signed a Share Purchase Agreement (SPA) to acquire Grupo Guascor S.L. (GG) for US$690 million (€500 million) in a cash and stock transaction, which includes US$172 million (€125 million) in net debt. The transaction is expected to close in the second quarter of this year.

GG, a private company founded in 1966, is headquartered in Vitoria-Gasteiz, Spain. The company’s estimated revenues and adjusted EBITDA for 2010 were US$413 million (€311 million) and US$65 million (€49 million), respectively. GG supplies diesel and gas engines, providing customized energy products across worldwide energy infrastructure markets based upon reciprocating engine power systems technologies.

“A significant portion of the purchase price will be paid in Dresser-Rand stock,” said Vince Volpe, Dresser-Rand’s president and CEO. “We intend to purchase an equivalent number of shares in a share repurchase program, thereby making this deal essentially a synthetic cash transaction.”

Dresser-Rand’s Board of Directors authorized a new stock repurchase program permitting the repurchase of 5 million Dresser-Rand common shares. Dresser-Rand also intends to repurchase US$130 million (€92.9 million) of its common shares to complete its previously authorized US$200 million (€142.8 million) share repurchase program.

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