GE Oil and Gas to pay $3.3 billion for Lufkin Industries

General Electric Co. Oil and Gas, a world leader in supporting technology and services for the oil and gas  industry, agreed April 8 to pay $3.3 billion to acquire Lufkin Industries Inc., a manufacturer of artificial lift technologies for the industry. GE will pay $88.50 per share in cash to Lufkin shareholders.

GE’s oil and gas company is it’s fastest growing business sector. The acquisition is expected to broaden its artificial lift capabilities and position it for significant growth, officials say. In 2012, Lufkin grew 37 percent, posting $1.3 billion in revenue for the year.

GE is headquartered in Fairfield and its gas and oil company employs roughly 37,000 workers in more than 1,000 countries. Lufkin, headquartered in Lufkin, Texas, employes about 4,500 employees in more than 40 countries.

Lufkin’s board of directors unanimously approved the transaction, which is expected to close in the second half of 2013, subject to shareholders’ and regulatory approval.

Since 2007 GE Oil and Gas has spent $11 billion in acquisitions, including the recent acquisitions of Wellstream Holdings, Dresser Inc. and Well Support.

By 10 a.m. April 8, Lufkin’s stock price was at $88.18, a 37 percent increase from the previous day’s closing price.