General Electric (GE) to Acquire Cameron Reciprocating Compression Unit
Shares of the General Electric Company (GE) closed down -0.62 or -2.28 percent on Friday on almost triple its daily volume. U.S. markets were closed on Monday morning in observance of Martin Luther Kingâ s Birthday, however, GE announced this morning it would be buying Cameron International Corp.â s CAM reciprocating compression unit for $550 million.
The acquisition of the Cameron unit is for GE Oil & Gasâ s Downstream Technology Solutions, one of the companyâ s fastest growing divisions. The addition of the unit will expand GEâ s manufacturing and servicing capabilities in gas production, processing and distribution, as well as the companyâ s shale development technology.
Fairfield, Connecticut based General Electric is a U.S. based transnational conglomerate best known as a manufacturer of appliances. The company, founded by Thomas Edison in 1892 has expanded into aviation, consumer electronics, oil and gas production and exploration, electric motors, locomotives, software, lighting, healthcare, energy and finance among other businesses. GEâ s 2012 revenue was in excess of $147 billion, with a worldwide workforce of 305,000. Houston, Texas based Cameron International (CAM
) is a global company providing pressure control and processing systems, in addition to project management and services for the oil and gas industries. Cameron employs 28,000 people worldwide. The reciprocating compression unit being acquired by GE operates in 20 global locations and employs about 900 people. The unit generated about $355 million in sales for Cameron in 2012, providing reciprocating compression equipment and aftermarket services and parts for the oil and gas industry. Reciprocating compressors have several applications in the industry including, gas transmission and storage, as well as gathering, lifting and injection of natural gas. Demand for high-speed reciprocating compressors has increased considerably with the extraction of oil and gas from shale deposits in the United States and Canada. Lorenzo Simonelli, president and CEO of GE Oil & Gas said that, â
Published on Jan 20, 2014
By Jay Hawk