GE Buys Oilfield Equipment Manufacturer

GE Buys Oilfield Equipment Manufacturer

The cost of acquiring Lufkin Industries is $3.3 billion.

NEW YORK -- General Electric (IW 500/5) said Monday it will acquire Lufkin Industries Inc. for about $3.3 billion.

Headquartered in Texas, Lufkin manufactures and services oilfield pumping equipment, gear drives and iron castings for various types of machinery.

The company has some 4,500 employees in more than 40 countries.

Lufkin shareholders will receive $88.50 in cash for each share.

"GE represents an excellent new home for Lufkin's technologies, services and our highly skilled and experienced employees," said John Glick, Lufkin president and chief executive.

Lufkin shares jumped nearly 3% to $87.88 in pre-market trade Monday.

The deal is expected to close in the second half of 2013, subject to shareholder approval.

Copyright Agence France-Presse, 2013

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