Siemens Agrees to Buy Dresser-Rand for $7.6 Billion

Dresser-Rand recently announced that it has entered into a definitive merger agreement with Siemens under which Siemens will acquire all of the outstanding shares of Dresser-Rand common stock. The transaction is valued at approximately $7.6 billion, including the assumption of debt. 

Siemens intends to operate Dresser-Rand as the company's oil and gas business, retaining the Dresser-Rand brand name and its executive leadership team. In addition, Siemens intends to maintain a significant presence in Houston, which will be the Siemens headquarters for its oil and gas business.

"As the premium brand in the global energy infrastructure markets, Dresser-Rand is a perfect fit for the Siemens portfolio," said Joe Kaeser, president and CEO of Siemens AG. "The combined activities will create a world-class provider for the growing oil and gas markets. With this, Dresser-Rand will become 'the oil and gas' company within Siemens and fit right into our Siemens Vision 2020."

The transaction is expected to close in the summer of 2015 and is subject to Dresser-Rand shareholder approval, regulatory approval in the United States, Europe and certain other jurisdictions, and other customary closing conditions. Under the terms of the merger agreement, Siemens has committed to take all necessary steps from a regulatory perspective to ensure that the transaction will be completed.

"We are excited about the opportunity to continue on our journey to become the premier supplier of high-speed rotating equipment and solutions for this industry and believe that the enhancements in offerings available to us in the form of the existing products and services from the Siemens group will serve as an accelerator for technological innovation, profitable growth and extended opportunities for our employees and the communities around the globe in which we operate," said Vincent R. Volpe Jr., Dresser-Rand's president and CEO. "Simply stated, we see this as a unique opportunity to better serve our clients, employees and shareholders and are pleased to have Dresser-Rand placed in the central role for Siemens as it develops its position in oil and gas."

For more information, visit www.siemens.com.