GE Agrees to Buy $2.8 Billion Oil-Service Unit; Shares Surge

General Electric Co. agreed to buy the well-support division of John Wood Group Plc for about $2.8 billion, adding equipment that helps extract more oil and gas from mature fields. Shares of both companies climbed.

The transaction may close later this year, with the approval of John Wood holders, GE said in a statement yesterday. The business, which also helps extract gas from shale, had sales of $947 million and earnings of $166 million before interest, taxes, depreciation and amortization last year.