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
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Some California Cities Seeking Water Independence
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- SoCalGas Reaches Record Spend on Diversity Suppliers
- Obama Seeks to Stay Neutral in CIA-Senate Conflict
- Will Missing Malaysian Jet Prompt Aviation System Change?
- Natural Gas Discovery Could Lead to Cleaner Fuels