Another US manufacturing company bought by a foreign company

[Londo_Jowo]

Looks like Siemens beat out GE in this deal.

German engineering company Siemens AG SIE.XE announced a deal to acquire U.S. oil-equipment maker Dresser-Rand Group Inc. DRC for $7.6 billion.

The Houston-based company is fetching $83 a share, in cash.

Dresser-Rand shares on Friday had shot up 9.4% to close at $79.91.

The German company beat out Swiss rival Sulzer AG SUN.EB , which had been in talks with Dresser-Rand over a stock-based merger, according to people familiar with the situation. The all-cash nature of the bid likely proved decisive in reaching a deal with the much smaller Dresser-Rand, analysts suggested. Siemens took in close to €76 billion ($97 billion) in revenue last year, while Dresser-Rand's total revenue was $3 billion.

Morgan Stanley MS and Zaoui & Co. advised Dresser Rand, according to the company. Goldman Sachs GS and Deutsche Bank DBK.XE advised Siemens, according to people familiar with the matter.

The acquisition is in line with Siemens Chief Executive Joe Kaeser's aim of building up the company's presence in the U.S. energy market and capitalizing on the shale-gas boom.

Siemens produces gas turbines and supplies equipment for companies that extract natural gas. The merger with Dresser-Rand, which produces compressors, turbines and other rotating equipment, would allow Siemens to expand its gas-extraction capabilities and more directly profit from hydraulic fracturing in the U.S.

Siemens's large supply-chain network would enable it to harness Dresser-Rand's profitable business in spare parts and a "very high recurring stream of revenues," said Robert Norfleet, an analyst with Alembic Global who covers Dresser-Rand.

 

[Bo625]

Profit Uber Alles.

 

[theeedude]

https://www.youtube.com/watch?v=wYkq037wPoE

 

[werepossum]

When other countries make most of our products, they can use the profits to buy the companies making the remainder.