DOW JONES NEWSWIRES
FMC Technologies, Inc. (FTI) said late Wednesday that it plans to buy Direct Drive Systems of Cerritos, California in a deal valued at about $120 million.
FMC, which provides technology solutions such as subsea production and processing systems to the energy industry, said the transaction is expected to close in the fourth quarter of this year. The deal is expected to be accretive in 2011.
Direct Drive provides high-speed, high-power synchronous motors and generators for the oil and gas industry.
"Our combined expertise and innovative technologies will allow for the creation of next-generation pumping and compression solutions, strengthening FMC's market-leading position in the important area of increased oil recovery," said Peter D. Kinnear, FMC's chairman, president and chief executive, in a statement.
"Our talented employees and innovative designs are a strong strategic fit with FMC Technologies, and we will now have additional growth opportunities due to their broad global reach," Kevin McGlensey, president and chief executive of DDS.