Jan 20 GE Co agreed to buy flow equipment
provider Cameron International Corp's reciprocating
compression division for $550 million as it looks to benefit
from the boom in the development of shale oil and gas fields.
The acquisition is expected to strengthen GE Oil & Gas's
high-speed reciprocating (HSR) business by adding higher
horsepower models for gas gathering, processing and
transmission, GE said on Monday.
High-speed reciprocating compressors are used for gas
gathering, gas lift and injection, transmission and storage. The
development of shale fields, particularly in North America, has
increased demand for these compressors.
Cameron's reciprocating compression division, which has
about 900 employees in 20 global locations, generated sales of
about $355 million in 2012. It will become a part of GE Oil &
Gas's newly formed downstream technology solutions business.
Oil & Gas is one of GE's fastest-growing businesses, with
annual orders of nearly $20 billion. Profit has grown at an
average 16 percent for the past three years.
Houston-based Cameron, which expects to complete the sale
during the third quarter, said it estimated an after-tax loss of
about $100 million related to the deal.