General Electric agreed on Monday to buy Lufkin Industries for about $3.3 billion, adding the maker of industrial lifts to its oil and gas businesses.
Under the terms of the deal, G.E. will pay $88.50 a share in cash, a 38 percent premium to Lufkin’s Friday closing price.
The deal is the latest by G.E.’s oil and natural gas unit, one of the fastest-growing parts of the conglomerate. The acquisition is meant to build upon G.E.’s acquisition of the John Wood Group’s well-support business in 2011.
Based in the Texas town of the same name, Lufkin focuses on lift equipment for oil and gas platforms. Lufkin reported $81.9 million in net income last year, its third straight year of consecutive growth, atop $1.3 billion in revenue.
The conglomerate said that Monday’s deal will allow it to service oil and gas wells at any stage of production.
“Advanced technologies, combined with new drilling practices, are revolutionizing the oil and gas industry,†Daniel C. Heintzelman, the chief executive of G.E.’s oil and gas unit, said in a statement. “In turbomachinery, Lufkin is already one of our suppliers for turbo gearing and specialty bearings products, and this acquisition allows us to further utilize their technologies and expertise for our customers.â€
The deal is expected to close in the second half of the year.
General Electric was advised by Goldman Sachs, Deutsche Bank and the law firm Weil, Gotshal & Manges. Lufkin was advised by Simmons & Company and the law firm Bracewell & Giuliani.
