"Dresser-Rand is a global leader in the energy infrastructure market with excellent management, strong cash flow and growth potential," said William E. Macaulay, Chairman and Chief Executive Officer of First Reserve. "The company's market-leading installed base provides a strong platform to grow its business. Dresser-Rand fits perfectly within our investment strategy of acquiring leading companies serving the global energy industry."
Herbert L. Henkel, Chairman, President and Chief Executive Officer of Ingersoll-Rand, said, "We are pleased to be working with First Reserve on this transaction, particularly given the firm's deep experience in the global energy business. This enabled us to complete the divestiture process on a compressed timeline with a high degree of certainty."
For more than 100 years, Olean, NY-based Dresser-Rand has been a leader in energy conversion technology, from initial concept to equipment retirement for the oil and gas, chemical, and petrochemical industries. The company designs, manufactures, sells and services a full line of energy industry-related equipment, including custom engineered centrifugal and reciprocating compressors, steam and gas turbines, and control systems under an assortment of brands: Dresser-Rand, Clark, Moore, Terry, Turbodyne, Worthington and Ingersoll-Rand. More than half of Dresser-Rand's 2003 revenue of approximately $1.3 billion was related to the sale of after-market parts and services, and 53% was generated outside the United States.
Dresser-Rand's President and Chief Executive Officer Vince Volpe commented, "Since the acquisition of the business by Ingersoll-Rand in 2000, we have made tremendous progress. As an independent organization teamed with the knowledge and resources of First Reserve, we will be in an even stronger position to continue to build on our record of improving operations and enhancing our product and service offerings for clients."
The Dresser-Rand acquisition, expected to close in the fourth quarter, will be the first investment made in First Reserve Fund X, a $2.3 billion private equity fund raised earlier this year. First Reserve's other recent transactions include the formation of Foundation Coal Holdings, and the acquisition of Halliburton Company's worldwide surface well testing business.
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