General Electric to buy oil-services firm

updated 9:52 a.m. ET Jan. 8, 2007

LONDON - General Electric Co. said Monday it agreed to buy oil services company Vetco Gray for $1.9 billion from private equity funds Candover Partners Ltd., 3i Group PLC & JP Morgan Partners LLC.

Completion of the transaction is subject to governmental and regulatory approval and is expected in early 2007, GE said in a statement.

Vetco Gray provides drilling, completion and production equipment for on- and offshore oil and gas fields. The business, which is forecast to generate over $1.6 billion of sales in 2006, has 5,000 employees with key centers in Houston, Britain, Norway and Singapore.

"This acquisition enables GE to seize faster growth in a rapidly expanding global business," said Claudi Santiago, chief executive of GE Oil & Gas. "Vetco Gray expands the portfolio of products, services and solutions available to one of the world's most dynamic industries."

MORE FROM OIL & ENERGY

Oil & Energy Section Front

Oil prices plummet to 13-month low Government warns of higher winter heat costs Gas below $3.50 for first time since April As economy dims, utility shut-offs are soaring Ike, Gustav to cost Entergy at least $1 billion Gas shortage continues to plague Southeast Gas falls almost four cents in last two weeks Southeast gas shortage squeezes retailers Southeast gas shortage keeps travelers home Price of gas continues climb started by Ike Oil & Energy Section Front   Add Oil & Energy headlines to your news reader: