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GE Oil & Gas (NYSE: GE) today announced that it has completed its acquisition of Lufkin Industries, Inc., a leading provider of artificial lift technologies for the oil and gas industry and a manufacturer of industrial gears based in Lufkin, Texas, for approximately $3.3 billion. The move broadens GE Oil & Gas’ artificial lift capabilities with solutions for a wider variety of well types and technology for production automation and optimization in the drilling industry.
On June 27, Lufkin shareholders voted to approve the transaction, in which shareholders will receive $88.50 per share in cash for each of their Lufkin shares.
Lufkin, with approximately 4,500 employees in more than 40 countries, manufactures and services a broad portfolio of artificial lift equipment through a global network of more than 110 service centers and nine manufacturing facilities. Artificial lift, used in 94 percent of the roughly 1 million oil-producing wells around the world, helps lift resources to the surface in reservoirs with low pressure and improves the efficiency of naturally flowing wells. GE, already active in artificial lift with electric submersible pumps (ESP), will now have expanded capabilities that include rod lift, gas lift, plunger lift, hydraulic lift, progressive cavity pumps and a sophisticated array of well controls and software. GE executive Ian Milne, most recently president of GE Oil & Gas’ Pressure Control business, will lead the Lufkin business post-close.
“Artificial lift technologies are essential in increasing well output, whether it’s maximizing the potential of a new well or breathing fresh life into a mature one,” said Daniel C. Heintzelman, president and CEO, GE Oil & Gas. “With Lufkin’s technologies, highly skilled employees and automation and optimization solutions, GE can now offer a more complete portfolio that address a wider variety of well types at all stages of the production life cycle.”