GE has agreed to acquire Camerons reciprocating
compression division for $550 million, the companies
The division provides reciprocating compression equipment and
aftermarket parts and services for oil and gas
, gas distribution and independent power
The business, which generated sales of approximately $355
million in 2012, has approximately 900 employees and operates
from 20 global locations. The acquisition is expected to
close later this year, subject to regulatory approval.
High-speed reciprocating compressors are used in several
applications from gas gathering, gas lift and injection, as
well as transmission and storage.
The development of shale oil and gas fields, particularly in
North America, has increased demand for high-speed
reciprocating compressors. As shale continues to develop in
other regions of the world, such as Asia and South America,
the acquisition will position GE to serve the industry
globally, according to company officials.
"This acquisition will benefit our employees, customers and
GE shareholders alike, said Lorenzo Simonelli, CEO of
GE Oil & Gas. Our increased strategic focus, the
buoyant oil and gas sector and our track record in providing
high-quality support to customers combined with
Camerons reciprocating compression division will
position us for accelerated growth.
The oil and gas segment is one of GEs fastest-growing
businesses, with orders rising from less than $1 billion per
year in 1994 to nearly $20 billion today and profits growing
at an average 16% rate over the past three years.
After closing, the Cameron business will become part of
GEs Oil & Gas recently formed downstream technology
solutions business in
order to better serve the $11 billion downstream and
distributed gas segments. The new business is designed to
deliver products, services and packaged solutions for both
the traditional downstream and the evolving unconventional
oil and gas space.
"Camerons reciprocating compression division will
become an important part of our downstream offering to
customers," said Hasan Dandashly, vice president of
services. "Its services
and geographic presence will expand our distributed gas
portfolio and enhance our shale capability and services
expertise for our customers.
The acquisition complements GE's existing high-speed
reciprocating (HSR) business, which focuses in low horsepower
units that are used predominately in gas lift applications.
Camerons portfolio complements GEs business by
adding higher horsepower models used in gas gathering,
processing and transmission.
We are very excited at the prospect of joining GE Oil
& Gas and the downstream technology
said Richard Stegall, president of Camerons
reciprocating compression business.
"Given our collective breadth of service offerings, the
combination will greatly benefit both companies
customers and employees. We have achieved good growth over
recent years, and we anticipate that this trajectory will
continue with the support of GE Oil & Gas."