General Electric to acquire Dresser for $3 billion

NEW YORK: General Electric Co on Wednesday signed a deal to buy Dresser Inc. for about $3 billion, its latest deal to expand its product offerings in gas and other energy markets.

Dresser's products include technology for gas engines, control and relief valves, measurement, regulation and control systems for gas and fuel distribution.

The Dresser acquisition will help GE capitalize on what may be a broader use of natural gas for power generation, chemical production and other industrial uses. This trend is being driven by recent discoveries of huge, cheaply accessible reservoirs of natural gas found deep underground in shale formations in the United States and abroad.

GE builds natural gas-fired turbines for power generation and provides services like water treatment and recycling for oil and gas drilling operations. Last week GE announced a mobile version of its water treatment technology designed to reach shale gas drilling locations.

GE didn't say whether the deal's value includes the assumption of Dresser's debt, or provide further details. A spokesman wasn't immediately available to comment.

Dresser is based in Addison, Texas. It had earnings of $318 million on revenue of $2 billion last year.

The deal requires regulatory approval. GE shares rose 26 cents to $1677 in morning trading.