GE to Acquire Cameron’s Reciprocating Compression Division
*Enhances GE’s Distributed Gas Portfolio and New Downstream Technology
*Expands GE’s Servicing and Manufacturing Capabilities in Gas Production,
Processing and Distribution Sectors
*Compressors Enhance GE’s Technologies in the Growing Shale Development
HOUSTON -- January 20, 2014
GE Oil & Gas (NYSE:GE) and Cameron (NYSE:CAM), a Houston-based provider of
flow equipment, systems and services, today announced that GE has agreed to
acquire Cameron’s Reciprocating Compression division for $550 million.
The division provides reciprocating compression equipment and aftermarket
parts and services for oil and gas production, gas processing, gas
distribution and independent power industries. Cameron’s Reciprocating
Compression division, which generated sales of approximately $355 million in
2012, has approximately 900 employees and operates from 20 global locations.
The acquisition is expected to close later this year subject to regulatory
High-speed reciprocating compressors are used in several applications from gas
gathering, gas lift and injection, as well as transmission and storage. The
development of shale oil and gas fields, particularly in North America, has
increased demand for high-speed reciprocating compressors. As shale continues
to develop in other regions of the world, such as Asia and South America, the
acquisition will position GE to serve the industry globally.
"This acquisition will benefit our employees, customers and GE shareholders
alike,” said Lorenzo Simonelli, president and CEO of GE Oil & Gas. “Our
increased strategic focus, the buoyant oil and gas sector and our track record
in providing high-quality support to customers combined with Cameron’s
Reciprocating Compression division will position us for accelerated growth.”
Oil & Gas is one of GE’s fastest-growing businesses, with orders rising from
less than $1 billion per year in 1994 to nearly $20 billion today and profits
growing at an average 16 percent over the past three years.
After closing, Cameron’s Reciprocating Compression division will become part
of GE’s Oil & Gas recently formed Downstream Technology Solutions business in
order to better serve the $11 billion downstream and distributed gas segments.
The new business is designed to deliver products, services and packaged
solutions for both the traditional downstream and the evolving unconventional
oil and gas space.
Hasan Dandashly, vice president of Downstream Technology Solutions, said,
"Cameron’s Reciprocating Compression division will become an important part of
our downstream offering to customers. Its services and geographic presence
will expand our distributed gas portfolio and enhance our shale capability and
services expertise for our customers.”
The acquisition complements GE’s Oil & Gas’ existing High-Speed Reciprocating
(HSR) business, which focuses in low horsepower units that are used
predominately in gas lift applications. Cameron’s Reciprocating Compression
division portfolio complements GE’s business by adding higher horsepower
models used in gas gathering, processing and transmission.
Richard Stegall, president of Cameron’s Reciprocating Compression division,
said, “We are very excited at the prospect of joining GE Oil & Gas and the
Downstream Technology Solutions business. Given our collective breadth of
service offerings, the combination will greatly benefit both companies’
customers and employees. We have achieved good growth over recent years, and
we anticipate that this trajectory will continue with the support of GE Oil &
The Downstream Technology Solutions business provides products, packaged
solutions and services for refining, petrochemical, industrial and natural gas
customers. Our products include compression, industrial power generation,
pumps and valves. Our packaged solutions include smaller-scale CNG and modular
About GE Oil & Gas
GE Oil & Gas works on the things that matter in the oil and gas industry.In
collaboration with our customers, we push the boundaries of technology to
bring energy to the world. From extraction to transportation to end use, we
address today's toughest challenges in order to fuel the future.
[Follow GE Oil & Gas on Twitter @GE_OilandGas.]
GE Oil & Gas
Sean Gannon, +1 212-587-5059
GE Oil & Gas
Fabio Pianini, +39 055 423 8872
VP Investor Communications
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