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GE to pay US$3.3bn for Lufkin Industries

Lufkin Industries shareholders will receive US$88.50 per share in cash for each share they hold.

As a provider of artificial lift technologies for the oil & gas industry and a manufacturer of industrial gears, Lufkin Industries will broaden GE Oil & Gas’s artificial lift capabilities beyond electric submersible pumps (ESPs) to include rod lift, gas lift, plunger lift, hydraulic lift, progressive cavity pumps as well as well automation and production optimization controls and software.

“Advanced technologies, combined with new drilling practices, are revolutionizing the oil & gas industry,” explained Daniel Heintzelman, president and CEO of GE Oil & Gas. “The artificial lift segment is at the heart of critical changes that are helping producers maximize well potential - which translates into increased output at lower operational cost. Lufkin’s world-class people, equipment and services fit perfectly in our portfolio and will enable us to offer a wide range of artificial lift solutions to our customers in this fast-growing artificial lift sector.”

“GE represents an excellent new home for Lufkin’s technologies, services and our highly skilled and experienced employees,” said Jay Glick, Lufkin’s president and CEO. “The global scale that GE offers, combined with its deep service offerings and network of research labs, will create new opportunities for our customers and employees around the world.”

Headquartered in Lufkin, Texas, Lufkin Industries has approximately 4500 employees in more than 40 countries, and a global network of more than 110 service centres and nine manufacturing facilities. Lufkin Industries recently opened a large manufacturing facility in Romania to service Eastern Hemisphere markets.