General Electric Co. announced its plans to buy infrastructure technology and service provider Dresser Inc. for a whopping $3 billion.
Dresser’s products include technology for gas engines, control and relief valves, measurement, regulation and control systems for gas and fuel distribution.
I don’t know if it’s just me, but hearing stuff like this doesn’t make me hopeful about the future. Is the act of big companies buying other big companies a good thing? I guess it can be, but it also reeks of big business and less variety of options.
Still, GE is pretty excited.
‘Dresser’s technology complements our existing gas engine portfolio and adds offerings complementary to those of GE in the $45 billion flow technology industry, including product offerings in the highly engineered valve segment,’ said John Krenicki, president and CEO of GE Energy, in a statement. Via Atlanta Business Chronicle
According to the article, Krenicki went on to say, “Eighty-five percent of Dresser’s revenue is from energy customers, and it has developed a large installed base of equipment, which is a big reason why 40 percent of its total revenue is derived from aftermarket service offerings, and there is a lot of room for future expansion.”
News of the acquisition caused GE’s stock to rise sharply today, jumping 2.85% to $16.98.
Hmm, I wonder how my stock in Enron is doing right now. I haven’t checked my portfolio in like a bazillion years.