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Siemens agrees $7.6bn deal to acquire Dresser-Rand

German firm agrees 'friendly' takeover of New York-listed supplier.

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Joe Kaeser, CEO of Siemens
Joe Kaeser, CEO of Siemens

Siemens has agreed a deal value at $7.6bn to acquire Dresser-Rand by way of a friendly takeover bid.

The German firm will purchase all of the issued and outstanding common shares of the New York-listed company at a price of $83 per share.

The board of Dresser Rand has given its unanimous blessing to the deal which is expected to close in 2015.

The acquisition complements Siemens' existing offerings, notably for the global oil & gas industry and for distributed power generation.

"As the premium brand in the global energy infrastructure markets, Dresser-Rand is a perfect fit for the Siemens portfolio,” said Joe Kaeser, president and CEO of Siemens.

“The combined activities will create a world-class provider for the growing oil & gas markets. With this, Dresser-Rand will become 'The oil and gas' company within Siemens and fit right into our Siemens Vision 2020."

With its comprehensive portfolio of compressors, steam turbines, gas turbines and engines, Dresser-Rand is a leading supplier for the oil & gas, process, power and other industries in the related energy infrastructure markets worldwide.

The Houston and Paris-based firm has annual revenues of around $3bn and approximately 8,100 employees.

Dresser-Rand's product portfolio completes Siemens' offerings with compressors and turbines.

Applications covered are high-pressure field injection and oil recovery, gas liquefaction, gas transmission and refinery processes.

Additionally, Dresser-Rand offers further technologies for distributed
power generation such as reciprocating engines as drives for compressors and power generation, micro LNG solutions.

This complements Siemens' offerings strengths in turbo compressors, downstream and industrial applications and in larger-sized steam turbines.

Siemens plans to realize more than EUR 150mn ($192mn) in annual synergies by 2019 as a result of the transaction.

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