POST Online Media Lite Edition


Siemens gets green light from EU for Dresser-Rand acquisition

Staff writer |
The EU Commission has unconditionally approved Siemens' acquisition of Dresser-Rand. All regulatory approvals required to complete the transaction have thus now been obtained.

Article continues below

Siemens plans to close the transaction by the end of June 2015. Siemens will pay all Dresser-Rand shareholders $85.20 per share. The purchase price comprises the offer of $83 per share plus a time-dependent ticking fee totaling $2.20 per share for the months of March to and including June 2015.

The overall consideration for acquiring all outstanding Dresser-Rand shares including the assumption of outstanding financial debt of $1.2 billion is about $7.8 billion.

Siemens is financing the purchase price from operating and investing cash flows and with newly issued USD bonds. The shares of Dresser-Rand Group Inc., which is headquartered in Houston, Texas (U.S.) and Paris (France), are currently listed on the New York Stock Exchange (NYSE). This listing is to be discontinued as of July 2015.

Dresser-Rand's business will form a new Dresser-Rand unit within Siemens Power and Gas Division with a primary focus on the oil and gas industry. Siemens is anticipating annual synergies of about €200 million from the integration of Dresser-Rand by 2019.

Dresser-Rand generated revenue of around $2.8 billion in fiscal 2014 and had about 7,900 employees. The well-established brands from Dresser-Rand's portfolio will be continued.

What to read next

Ingersoll Rand to buy Cameron's Centrifugal Compression Division
Ingersoll Rand acquires Frigoblock
Nokia to buy Siemens' entire 50% stake in Nokia Siemens Networks