FMC to Acquire Direct Drive Systems
FMC Technologies announced its intent to acquire Direct Drive Systems (DDS). Based in Cerritos, California, DDS is a world leader in the development and manufacture of high-performance permanent magnet motors and bearings for the oil and gas industry. The transaction, expected to close in the fourth quarter of 2009, is valued at approximately $120 million and is expected to be accretive in 2011.
Direct Drive Systems provides operationally superior machines for a variety of primary energy related applications, including integral motors and related system components for compression and pumping for natural gas pipelines, offshore platform and subsea processing markets. The compact size, efficiency and reliability of the DDS motors make them ideal for these demanding applications.
"DDS' strength in compact, high efficiency motors, combined with FMC's system integration capabilities, will result in enhanced value for our customers," said Peter D. Kinnear, FMC's Chairman, President and Chief Executive Officer. "Our combined expertise and innovative technologies will allow for the creation of next-generation pumping and compression solutions, strengthening FMC’s market-leading position in the important area of increased oil recovery."
"We are excited to join FMC and complement its industry leadership position," said Kevin McGlensey, President and Chief Executive Officer of DDS. "Our talented employees and innovative designs are a strong strategic fit with FMC Technologies, and we will now have additional growth opportunities due to their broad global reach."
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