Dresser-Rand Acquires Leading Edge Turbine Technologies, Inc.
HOUSTON, Jan. 18 - Dresser-Rand Group Inc. ("Dresser-Rand" or the "Company") (NYSE:DRC), a global supplier of high-speed rotating equipment and service solutions, announced today that Dresser-Rand Company acquired the assets of Leading Edge Turbine Technologies, Inc. and its related company (Leading Edge).
Leading Edge, a private company founded in 2000, is headquartered in Houston, Texas, where it operates a state-of-the-art service and repair facility with modern process technology, machining, welding, coating, and mechanical capabilities. The company specializes in the repair of industrial gas turbine combustion, stationary and rotating components for most major gas turbine OEM models and frame sizes, including GE and Siemens technologies. Additionally, Leading Edge offers repair services for large utility steam turbine equipment. The company's primary clients are in the worldwide power generation, pipeline, petrochemical, and industrial sectors.
Leading Edge's sales were approximately $26 million in fiscal year 2009.
This acquisition is consistent with Dresser-Rand's business strategy of service solution expansion and is a natural addition to the Company's core service portfolio. The acquisition adds a new dimension to the Company's service portfolio with extension into the attractively large and growing industrial gas turbine repair and field services segment. Additionally, the acquisition strengthens the Company's capabilities to provide service to the power generation sector and is complementary to its core oil and gas markets as well as its steam turbine, controls, Applied Technology, and Field Services businesses. The Company expects to achieve significant worldwide growth going forward by combining Leading Edge's industrial gas turbine repair capabilities with Dresser-Rand's extensive global service infrastructure and market channels.
Under the agreement, Dresser-Rand will acquire the Leading Edge assets for an initial consideration of approximately $35 million. The acquisition is expected to be neutral to earnings in the first year and accretive thereafter.
"Leading Edge is an excellent first step into a promising new market for Dresser-Rand. It extends our capabilities to the service and repair of industrial gas turbines and strengthens our large steam turbine service capabilities," said Luciano Mozzato, Dresser-Rand's executive vice president, Services Worldwide. "The gas turbine aftermarket represents a multi- billion dollar annual opportunity that Dresser-Rand is excited about participating in. Leading Edge has earned a reputation as a high-quality service provider for a wide-range of rotating equipment. The Company has an impressive management team with a record of profitable growth."
Dave Theis, Leading Edge's co-founder and CEO commented, "We are extremely excited to be a part of the Dresser-Rand family. We believe that together we will be able to achieve significantly greater results in terms of top and bottom line growth, access to a broader market, greater technical capabilities, and added client relationships, compared to what we might have been able to achieve on our own."
About Dresser-Rand
Dresser-Rand is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. The Company operates manufacturing facilities in the United States, France, United Kingdom, Germany, Norway, India, and China, and maintains a network of 36 service and support centers covering more than 140 countries.
Source: Dresser-Rand Group Inc.
CONTACT:
Blaise Derrico,
Director Investor Relations,
+1-713-973-5497
Web Site: http://www.dresser-rand.com/
