2011-02-15-2011-02-14-2011-04-26

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
2.8BB
Description

Bought Well Support division, gaining more than 20 manufacturing & multiple service centers worldwide focused on electric submersible pumps, pressure control & wireline logging services.

GE, Stamford, Conn., (NYSE: GE) has completed the strategic acquisition of John Wood Group Plc's Well Support Division for $2.8 billion in cash, expanding Florence, Italy-based GE Oil & Gas' extensive drilling and surface manufacturing and services portfolio.

The Well Support division, which has more than 3,800 employees globally and operates approximately 20 manufacturing and multiple sales and service centers worldwide, comprises three business platforms--ESP (electric submersible pumps), Pressure Control (surface wellheads and trees) and Logging Services. Combined, these platforms recorded 2010 revenues of $947 million.

The $2.8-billion transaction enables GE to capitalize on the fast-growing demand for enhanced oil recovery from mature oil fields using downhole-pump artificial lift in brownfield developments. Additionally, the deal expands GE's high-technology product and service offering in unconventional oil and gas production, with significant applications for shale-gas production.

Claudi Santiago, president and chief executive, GE Oil & Gas, says, "Given the reliability and quality of its technology and the expertise of its employees, the Well Support division is an excellent addition to GE Oil & Gas, strengthening our engineering capabilities and our extensive suite of advanced capital drilling and production solutions. Combined with our integrated portfolio, global supply-chain and footprint, the Well Support division adds further value for our customers and enhances GE's position in rapid growth oil and gas industry segments and regions."

Jim Renfroe, CEO of Wood Group Plc's Well Support Division, says, "We are delighted to become part of the GE Oil & Gas family. The transaction positions GE Oil & Gas firmly to lead a new chapter in oil and gas unconventional production, expanding our combined customer base and providing significant new channels for advanced high-tech equipment and services around the world."