LUFKIN (KYTX) - GE and Lufkin Industries Inc., in Lufkin, announced a joint agreement Monday morning for GE to acquire Lufkin Industries for $3.3 billion.
According to 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.
"GE represents an excellent new home for Lufkin's technologies, services and our highly skilled and experienced employees," said John F. "Jay" Glick, Lufkin's president and CEO. "The global scale that GE offers, combined with its deep service offerings and network of research labs, will create new opportunities for our customers and employees around the world. This transaction allows us to realize our strategic objectives for expanding both our portfolio and our global platform and will allow us to reach global customers much faster and more effectively than we could have done as a standalone company. We believe the financial terms of the transaction represent full and fair value for Lufkin's shareholders."
Lufkin Industries makes oilfield equipment and employees approximately 4,500 people in more than 40 countries according to their website.