GE announced a major expansion of its presence in the global oil and gas industry, entering into an agreement to acquire Vetco Gray for $1.9B from Candover, 3i & JP Morgan Partners.
Vetco Gray is one of the world’s leading suppliers of drilling, completion and production equipment for on- and offshore oil and gas fields, including subsea applications. The business, which is expected to generate over $1.6B of sales in 2006, employs 5,000 people in more than 30 countries, with key centers in Houston (USA), Aberdeen (UK), Stavanger (N), Oslo (N) and Singapore. Major products include flow control valves (known as “Christmas trees”), control systems, wellheads, manifolds, risers and associated after-market services.
The move further strengthens GE’s Infrastructure portfolio. The closing of the transaction, which is subject to conditions including the receipt of governmental, regulatory and other approvals, is expected in early 2007.
This acquisition enables GE to seize faster growth in a rapidly expanding global business.—Claudi Santiago, CEO of GE Oil & Gas
Upon completion of the transaction, Candover, 3i & JP Morgan Partners will continue to own Vetco Aibel, which is engaged in the business of design, engineering, construction and maintenance of oil and natural gas production facilities, process systems and related products.
GE Oil & Gas is a leading manufacturer of capital equipment for the global Oil & Gas industry. Products include rotating and static equipment. Based in Florence, Italy, the company offers complete solutions for oil and gas production, LNG, transportation, storage, refineries and petrochemicals, as well as pipeline integrity solutions.