General Electric Co is buying oilfield pump maker Lufkin Industries Inc for $2.98 billion, sharply increasing its presence in the fast-growing market to extract oil and natural gas from shale rock, the conglomerate said on Monday.Lufkin's pumps, also known as artificial lift products, are commonly seen seesawing back and forth on top of energy wells to pull oil and natural gas to the surface.The Lufkin deal, which the parties expect to close by June, is GE's first major acquisition since the conglomerate sold its remaining stake in NBC Universal two months ago. It is a key part of CEO Jeff Immelt's plan to focus more on growth in the energy-rich shale fields of North Dakota, Texas and elsewhere in the United States.After the deal closes, GE's Oil & Gas business will be the third-largest manufacturing unit by revenue behind the power and water and aviation units. The Oil & Gas unit has been growing at a breakneck clip, posting a 16 percent jump in revenue from 2011 to 2012.
Lufkin Industries, Inc. is a global supplier of artificial lift products, technology, services and solutions, including automated control equipment and analytical products for artificial lift equipment, to the oil and gas industry. Shares of LUFK traded higher by 37.49% or $23.97/share to $87.90. In the past year, the shares have traded as low as $45.11 and as high as $80.04. On average, 508110 shares of LUFK exchange hands on a given day and today's volume is recorded at 9502219.
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