2010-10-06-2010-10-06

To buy global energy infrastructure technology and service company, gaining compression, flow technology and distribution infrastructure services to more than 150 countries.

GE, Stamford, Conn., (NYSE: GE) plans to acquire Addison, Texas-based global energy infrastructure technology and service provider Dresser Inc., which is majority-owned by funds managed by Riverstone Holdings LLC and First Reserve Corp., for $3 billion.

Dresser's portfolio includes technologies for gas engines, control and relief valves, measurement, regulation and control solutions for gas and fuel distribution. Dresser provides compression, flow technology, measurement and distribution infrastructure and services to more than 150 countries. The assets will complement GE's core energy offerings and extend its reach into adjacent offerings for its energy and industrial customers around the world.

Dresser also will further the development of GE Energy's monitoring, diagnostics and performance optimization offerings. Dresser's pressure-relief and control-valve technologies will be complemented by GE's domain expertise, which will create opportunities to bring additional technology and applications to Dresser's offerings.

GE vice chairman and GE Energy president and chief executive John Krenicki says. "Dresser is a great fit for the GE business model. Dresser's technology complements our existing gas engine portfolio and adds offerings complementary to those of GE in the $45 billion flow-technology industry, including product offerings in the highly engineered valve segment. Eighty-five percent of Dresser's revenue is from energy customers, and it has developed a large installed base of equipment, which is a big reason why 40% of its total revenue is derived from aftermarket service offerings, and there is a lot of room for future expansion."

Dresser President and CEO John Ryan says, "Joining the GE family will enhance our company's capability to provide best-in-class energy technologies to a much broader segment of the energy sector. Our employees have worked hard to build a world-class reputation and we are confident that our tradition of putting the customer first will continue to be the standard. Today's announcement marks the beginning of a great opportunity for our customers and employees as we put these two 100+ year old companies together and create new paths for growth and innovation."

Barclays Capital Inc. is financial advisor to GE.