INDUSTRY NEWS
GE to Acquire Lufkin Industries, Including Lufkin Foundry GE, Houston, and Lufkin Indus-
tries Inc., Lufkin, Texas, have an- nounced a joint agreement whereby GE will acquire Lufkin for approxi- mately $3.3 billion. Included in the acquisition is the
Lufkin Foundry and Machine Company in Lufkin, Texas. It produces medium to large, low to medium volume ductile and gray iron castings for industries includ- ing valves, machine tools, renewable energy, oil and gas, waste water treat- ment, pumps and compressors, as well as construction equipment, agriculture and special machinery. Lufkin Industries Inc. is a leading
provider of artificial lift technologies for the oil and gas industry and a manufac- turer of industrial gears. Artificial lift, used in 94% of the roughly 1 million oil-producing wells around the world, helps lift hydrocarbons to the surface in reservoirs with low pressure and
improves the efficiency of naturally flow- ing wells. Tis acquisition broadens GE Oil & Gas artificial lift capabilities be- yond electric submersible pumps (ESPs) to include rod lift, gas lift, plunger lift, hydraulic lift, progressive cavity pumps and well automation and production optimization controls and software. Te ESP category of artificial lift is the only lift segment in which Lufkin does not currently compete. “Advanced technologies, combined
with new drilling practices, are revolu- tionizing the oil and gas industry,” said Daniel C. Heintzelman, president and CEO, GE Oil & Gas. “Te artificial lift segment is at the heart of critical changes that are helping producers maximize well potential, which trans- lates into increased output at lower operational cost.” With approximately 4,500 employ- ees in more than 40 countries, Lufkin
Industries, Inc. sells and services oilfield pumping units, well automation sys- tems, gas lift and plunger lift systems, progressing cavity pumps, well comple- tion products and power transmission products throughout the world. In 2012, Lufkin posted record revenues of $1.3 billion, which reflected 37% growth. New business bookings in 2012 grew 38% companywide to $1.3 billion year over year, driven by a 47% increase in its artificial lift business. “Te global scale that GE offers,
combined with its deep service of- ferings and network of research labs, will create new opportunities for our customers and employees around the world,” said John F. “Jay” Glick, Lufkin’s president and CEO. Te transaction is expected to close in
the second half of 2013 subject to Lufkin shareholders’ approval, regulatory approv- als and customary closing conditions.
May 2013 MODERN CASTING | 11
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