Siemens Buys Dresser-Rand, an Oil Services Company, for $7.6 Billion
Siemens, the German engineering conglomerate, announced late Sunday a deal for the Dresser-Rand Group, an oil products and services company.
The deal, worth about $7.6 billion, including the assumption of debt, gives Siemens prominence in the American energy sector, which is booming as new reserves of oil and natural gas are tapped through unconventional drilling techniques.
“Dresser-Rand is a perfect fit for the Siemens portfolio,” said Joe Kaeser, chief executive of Siemens.
He added, “With this, Dresser-Rand will become the oil and gas company within Siemens.”
Winning the bidding war for Dresser-Rand would be a win for Mr. Kaeser.
But in acquiring Dresser-Rand, based in Houston, Siemens is expanding its exposure to the industry as technology for the extraction method called hydraulic fracturing, or fracking, opens huge swaths of land to drilling.
Siemens, with a market value of nearly $85 billion, is a vastly larger company than Dresser-Rand, whose products it will sell through its sales operation.