General Electric has agreed to take over Dresser Inc, which manufactures energy infrastructure products in a $3 billion deal led by investors from private-equity firms the Carlyle Group LP as well as Riverstone Holdings LLC.
General Electric is on a bit of a roll with expanding its energy holdings, with a joint venture with Harbin Power Equipment announced in Septemeber. Harbin are manufacturers of wind turbines which sell to customers in China. Currently reports say that GE’s energy division is looking for potential partnerships in order to increase the range of holdings in the smart grid business.
The Dresser acquisition will include technology for gas engines and other products for use with gas and fuel to help control distribution. Dresser is active in more than 150 countries around the world but earned a $318 million on a $2 billion revenue last year.
Previously Dresser was bought by an investor group for an undisclosed amount of money; the group include now-defunct Lehman Brothers investment bank. Up until 2001 it was a unit of Halliburton Co and explored the option of selling itself in 2006. It withdrew plans for a public offering after saying it needed to correct accounting issues before going under the hammer.
The latest sale comes as investors are trying to generate cash by selling holdings. This has occurred both through selling stakes in companies through public offerings as well as through divestitures. General Electric is set to expand further into the energy market in the months ahead.