Siemens to buy Houston energy equipment maker for $7.6B

Source: By Collin Eaton, Fuel Fix • Posted: Wednesday, September 24, 2014

Munich-based Siemens AG — GE’s German competitor — will acquire Houston-based energy equipment producer Dresser-Rand Group for $7.6 billion, the companies announced Sunday.

The buyout’s announcement came just months after Siemens bought Rolls-Royce Holdings’ energy business for $1.3 billion. Dresser-Rand sells compressors that aid oil and gas production, which are in increasing demand in U.S. shale fields, where wells’ initial output often quickly wanes.

The deal is set to close in 2015.

“As the premium brand in the global energy infrastructure markets, Dresser-Rand is a perfect fit for the Siemens portfolio,” Siemens CEO Joe Kaeser said in a statement. “The combined activities will create a world-class provider for the growing oil and gas markets. With this Dresser-Rand will become ‘the oil and gas’ company within Siemens and fit right into our Siemens Vision 2020” (Collin Eaton, Fuel Fix, Sept. 21).