HOUSTON (AP) — German electronics and engineering company Siemens AG has reached a deal to acquire oilfield equipment maker Dresser-Rand for $7.6 billion.
Under the deal announced early Monday in Germany, Siemens will pay $83 per common share of Dresser-Rand Group Inc., $3.09 more than the company's closing share price on Friday. Dresser Rand's market capitalization is $6.12 billion. The deal includes assumption of debt.
Dresser-Rand's board of directors unanimously recommended the offer to shareholders, and Siemens expects to close the deal by summer, according to a statement from the company.
Siemens said in a statement that Dresser-Rand's portfolio of compressors, steam and gas turbines and engines complements Siemens' existing offerings mainly in the growing global oil and gas and power generation businesses.
Dresser-Rand, based in Houston and Paris, has annual revenue of around $3 billion and employs about 8,100 people.
Siemens will operate Dresser-Rand as its oil and gas business under the Dresser-Rand brand name and retain its executive team, a Dresser-Rand statement said.
The oil and gas business will be based in Houston and the company will maintain a "significant presence" there, the statement said.
Also Monday, Siemens announced that Robert Bosch GmbH will buy Siemens' 50 percent stake in a household appliance joint venture between the two companies for 3 billion euros ($3.85 billion). The deal for BSH Bosch und Siemens Hausgerate must still be approved by regulators. It's expected to be finished in the first half of next year.
Siemens and Bosch also will each get 250 million euros from BSH before the deal is finished.