HOUSTON – Dresser-Rand Group Inc., a global supplier of rotating equipment and aftermarket parts and services, has entered into a definitive merger agreement with Siemens under which Siemens will acquire all of the outstanding shares of Dresser-Rand common stock for $83 per share in cash. The transaction is valued at approximately $7.6 billion, including the assumption of debt.
Siemens intends to operate Dresser-Rand as the company’s oil and gas business retaining the Dresser-Rand brand name and its executive leadership team. In addition, Siemens intends to maintain a significant presence in Houston, which will be the headquarters of Siemens’ oil and gas business.
"As the premium brand in the global energy infrastructure markets, Dresser-Rand is a perfect fit for the Siemens portfolio. The combined activities will create a world-class provider for the growing oil and gas markets.
"Dresser-Rand will become ‘The oil and gas’ company within Siemens and fit right into our Siemens Vision 2020," said Joe Kaeser, president and CEO of Siemens AG.
"After a thorough and competitive process, we are pleased to have reached this agreement with Siemens as it maximizes value and delivers significant benefits to all Dresser-Rand stakeholders," said Vincent Volpe Jr., Dresser-Rand’s president and CEO.
"Our aim is to become the leading rotating equipment and process system integrator for the oil and gas industry. Dresser-Rand has a strong presence in oil and gas, a reputation for technology leadership and innovation, and a talented and experienced leadership team. Our intention is to leverage these strengths by maintaining the existing company and brand name and selectively moving complementary products and services from the existing Siemens portfolio into Dresser-Rand, enabling us to offer a much broader range of products, services and solutions to meet our customers’ needs," said Lisa Davis, member of the Managing Board of Siemens AG.
The transaction is expected to close in the summer of 2015 and is subject to Dresser-Rand shareholder approval, regulatory approval in the U.S., Europe and certain other jurisdictions, and other customary closing conditions.
