GE Buys Cameron
Big news from the oil and gas industry today as GE has agreed to acquire Cameron’s Reciprocating Compression division for $550 million. The division provides reciprocating compression equipment and aftermarket parts and services for oil and gas production, gas processing, gas distribution and independent power industries.
Cameron’s Reciprocating Compression division, which generated sales of $355 million in 2012, has 900 employees and operates from 20 global locations. The acquisition is expected to close later this year subject to regulatory approval.
After closing, Cameron’s Reciprocating Compression division will become part of GE’s Oil & Gas recently formed Downstream Technology Solutions. The new business unit is designed to deliver products, services and packaged solutions for both the traditional downstream and the evolving unconventional oil and gas space.
In making the announcement, GE noted that high-speed reciprocating compressors are used in several applications from gas gathering, gas lift and injection, as well as transmission and storage. The development of shale oil and gas fields, particularly in North America, has increased demand for high-speed reciprocating compressors. As shale continues to develop in other regions of the world, such as Asia and South America, the acquisition will position GE to serve the industry globally.
The acquisition complements GE’s Oil & Gas’ existing High-Speed Reciprocating (HSR) business, the company said, which focuses on low horsepower units that are used predominately in gas lift applications. Cameron’s Reciprocating Compression division portfolio complements GE’s business by adding higher horsepower models used in gas gathering, processing and transmission.