GE to Acquire Lufkin Industries
US$3.3 billion move will be completed by second half of this year
GE is buying Lufkin Industries Inc., a provider of pumping systems for the oil and gas industry, for US$3.3 billion and will complete the acquisition in the second half of this year.
The Lufkin acquisition 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.
GE said the ESP category of artificial lift is the only lift segment in which Lufkin does not currently compete. Artificial lift is used in 94% of the roughly one million oil-producing wells around the world.
Lufkin, based in Lufkin, Texas, U.S.A., has 4500 employees in more than 40 nations. It makes and services a broad portfolio of pumping equipment through a global network of more than 110 service centers and nine manufacturing facilities. It also has three turbomachinery production facilities that make industrial gears and engineered bearings.