Energy industry giants GE have completed their £2.2billion takeover of oil and gas industry lift producers Lufkin.
Lufkin, which bought up Aberdeen-based Zenith Oilfield Technology last year for £80million, has more than 4500 employees around the world. Shareholders will receive $88.50 per share for the deal.
“Artificial lift technologies are essential in increasing well output, whether it’s maximizing the potential of a new well or breathing fresh life into a mature one,” said GE oil and gas chief executive Daniel Heintzelman.
“With Lufkin’s technologies, highly skilled employees and automation and optimization solutions, GE can now offer a more complete portfolio that address a wider variety of well types at all stages of the production life cycle.”
The deal will increase GE’s portfolio of lift services for the oil and gas industry. Ian Milne, formerly president of GE Oil and Gas’ pressure control arm, will lead Lufkin following the acquisition.
Analysts have predicted the artificial lift sector is to be worth up to $13billion in 2013, due to the development of shale gas production.