Siemens has entered into an agreement with Dresser-Rand, which is listed on the New York Stock Exchange, to acquire all of the issued and outstanding common shares of Dresser-Rand by way of a friendly takeover bid. Siemens’ bid is reported to be unanimously supported by Dresser-Rand’s board of directors. The offer price is $83 per common share in cash, or a total transaction value of approximately $7.6 billion (approximately €5.8 billion). Siemens says the move is in line with its ‘Vision 2020’ policy statement, which predicts ‘decisive moves to strengthen its core’.
Dresser-Rand’s range includes compressors, steam turbines, gas turbines and reciprocating engines, aimed mainly at the oil & gas, process, power and other industries in related energy infrastructure markets. The acquisition is a good fit with Siemens’ existing offerings, notably for the global oil & gas industry and for distributed power generation.
"The combined activities will create a world-class provider for the growing oil & gas markets. With this, Dresser-Rand will become ‘The oil and gas’ company within Siemens and fit right into our Siemens Vision 2020," commented Joe Kaeser, president and CEO of Siemens AG.
Dresser-Rand’s Board of Directors has unanimously recommended the offer to Dresser-Rand’s shareholders. Siemens expects to close the transaction by summer 2015.
