General Electric Company
) recently agreed to acquire
Cameron International Corporation's
) Reciprocating Compression division for $550 million. The
acquisition is expected to close later this year.
Post acquisition, Cameron's Reciprocating Compression division
will be a part of the Downstream Technology Solutions business of
GE's Oil & Gas segment. This acquisition is likely to
complement General Electric's distributed gas portfolio and
downstream technology solutions business. While GE's Oil &
Gas' focused on low horsepower units that are used predominately
in gas lift applications, the acquired business will add higher
horsepower models that are used in gas gathering, processing and
The services and geographic presence will expand the company's
distributed gas portfolio and enhance shale capability and
services expertise for its customers. The development of shale
oil and gas fields, particularly in North America, has increased
demand for high-speed reciprocating compressors. This acquisition
will position General Electric to serve the industry globally as
shale continues to develop in other regions of the world.
Additionally, the combined business is likely to offer services
and packaged solutions for both the traditional downstream and
the evolving unconventional oil and gas space.
Oil & Gas is considered to be one of the fastest-growing
businesses of General Electric with orders rising from less than
$1 billion per year in 1994 to nearly $20 billion to date and
profits growing at an average 16% over the past three years.
General Electric is one of the most diversified technologies
and financial service corporations in the world. The company's
segments include Power & Water, Oil & Gas, Energy
Management, Aviation, Healthcare, Transportation, Home &
Business Solutions, and GE Capital.
CAMERON INTL (CAM): Free Stock Analysis
CRANE CO (CR): Free Stock Analysis Report
CARLISLE COS IN (CSL): Free Stock Analysis
GENL ELECTRIC (GE): Free Stock Analysis
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