General Electric Co. has agreed to acquire Lufkin Industries Inc. for more than $3 billion as the mega-firm looks to grow its expanding oil and gas business.
The $88.50-a-share offer from GE represents a 38.4% premium over Lufkin’s Friday $63.93 closing price. The deal for Lufkin, which employs 4,500 people in more than 40 countries, expands GE’s artificial-lift capabilities to a larger variety of well types.
GE Oil & Gas President Daniel C. Heintzelman said the acquisition beefs up his company’s offerings in a segment that “is at the heart of critical changes” that are transforming the oil and gas industry, allowing producers to maximize the potential of wells.
“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,” Heintzelman said in a statement.