U.S. conglomerate General Electric said it had agreed to buy energy service
company Lufkin Industries Inc. for about $3.3 billion.
The all-cash deal, which amounts to $88.50 per share, marks GE's return to its planned expansion into oil and gas businesses, The Wall Street Journal reported Monday.
Lufkin produces and services pumping systems that put pressure on an underground well when the natural pressure in the well wanes to the point that it can no longer push oil to the surface.
The deal is a 38 percent premium on Lufkin's closing price on Friday, the Journal said.
In part due to two acquisitions, Lufkin earned $819 million in profit in 2012, with revenue up 37 percent from 2011 to $1.28 billion.
Most Popular Stories
- Doctor Who Christmas Episode Begins Production
- HCL America Adding 1,200 IT Jobs
- Medical Mfg. Jobs Coming to Dayton
- Michael Jackson, Freddie Mercury on Previously Unreleased Queen Cut
- Longtime Unemployed to Get Help in Las Vegas
- SpaceX Aims for Predawn Launch on Saturday
- Women Key to Democratic Party: Clinton
- U.S. Chamber Caught Up in Tax Inversion Question
- Feds Won't Say How Many Border Crossers Jailed
- Christie Didn't Order Bridge Shut Down, Feds Say