Siemens Inc. will be paying $83 per share of Dresser-Rand's stock which is a 37 percent premium from the latter's share price in July. The news of a potential buyout have increased the price of Dresser-Rand before Siemens had settled with a bid price.
The German engineering company, Siemens Inc., has been wanting to acquire Dresser-Rand, a company which manufactures compressors and turbines for the gas and oil sector for a few years now. With the acquisition, Siemens aims to strengthen their business in the energy sector, especially in the United States.
Siemens AG is a German multinational engineering and electronics conglomerate based in Munich and Berlin. It is the largest engineering company and producer of medical diagnostics equipment in Europe. Siemens has four main line of business: Industry, Energy, Healthcare and Infrastructure and Cities. Siemens also has two other businesses aside from those four mentioned - Siemens IT Solutions and Services and Siemens Financial Services. The company has operations in 190 countries and has approximately 285 manufacturing and production facilities.
The takeover is not final as there are other bidders in the market like General Electric Co. which has also been in talks with Dresser-Rand for some time now. With the growing need for energy and a boom in unconventional oil, Dresser-Rands products are very attractive to companies in the industry and has been in the takeover lookout for over a year.
Dresser-Rand Group Inc. is a supplier of custom-engineered rotating equipment solutions that is used for gas, oil, and other process industries globally. The company is based both in Texas, United States and in Paris, France. Dresser-Rand has extended its market share after their acquistion of Grupo Guascor S.L. and Synchrony and in their investments in Ramgen Power Systems as well as Echogen Power Systems. The company has 14 manufacturing facilities and has more than 70 offices worldwide.
