General Electric Co. (GE) has agreed to Dresser Inc., a maker of
energy infrastructure products, for $3 billion from investors led
by private-equity firms Riverstone Holdings LLC and the Carlyle
Group LP.
The deal is the conglomerate's latest move to expand its energy
business. In September, it announced a joint venture with a unit of
Harbin Power Equipment Co. (1133.HK) to manufacture wind turbines
to customers in China. Its energy division is studying potential
partnerships to give it a greater range in the smart grid
business.
Dresser's offerings include technology for gas engines and
control products for gas and fuel distribution. The target, active
in more than 150 countries, earned $318 million last year on $2
billion in revenue.
Dresser was bought by the investor group, which also included
First Reserve Corp. and defunct investment bank Lehman Brothers
Holdings, for an undisclosed price. It had been a Halliburton Co.
(HAL) unit until 2001 and explored selling itself in 2006 after
withdrawing plans for an initial public offering, citing the need
to correct accounting issues.
Meanwhile, the sale by the Carlyle-led group comes as
private-equity companies have been selling numerous holdings as
they look to generate cash from them. That has occurred both
through outright divestitures as well as selling a stake in
companies through initial public offerings.
GE shares were up 3 cents at $16.54 in recent trading.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com