General Electric Buying Dresser For $3 Billion

General Electric Co GE has announced its plans to purchase Dresser Inc for $3 billion. Barclays Capital was the financial advisor of GE on the deal. The diverse portfolio of Dresser will help GE in complementing many of its product offerings. Dresser is operating in more than 100 countries. It had $2 billion in revenue and $318 million in earnings in 2009. John Krenicki, vice chairman of GE and president and CEO of GE Energy said, “Dresser is a great fit for the GE business model.” Krenicki added, “Dresser's technology complements our existing gas engine portfolio and adds offerings complementary to those of GE in the $45 billion flow technology industry, including product offerings in the highly engineered valve segment. Eighty-five percent of Dresser's revenue is from energy customers, and it has developed a large installed base of equipment, which is a big reason why 40 percent of its total revenue is derived from aftermarket service offerings, and there is a lot of room for future expansion.” Krenicki mentioned, “Our track record integrating previous acquisitions such as Nuovo Pignone, (Oil & Gas), Jenbacher (gas engines), Bently Nevada (conditioning and monitoring) and Enron Wind (renewable energy), gives us great confidence to build upon as we move forward with Dresser.” GE shares gained 0.91% to $16.66 at 9:47 am. Read more from Benzinga's Company news.