The EU Commission has unconditionally approved Siemens’ acquisition of Dresser-Rand. All regulatory approvals required to complete the transaction have now been obtained and the transaction due to be closed by the end of June 2015. Siemens will pay all Dresser-Rand shareholders USD 85.20 per share. The purchase price comprises the offer of USD 83 per share plus a time-dependent ticking fee of USD 2.20 per share for the months of March to and including June 2015. The overall consideration for acquiring all outstanding Dresser-Rand shares including the assumption of outstanding financial debt of USD 1.2B is about USD 7.8B.
Siemens is financing the purchase price from operating and investing cash flows and with newly issued USD bonds. The shares of Dresser-Rand Group, which is headquartered in Houston, Texas, and Paris, are currently listed on the New York Stock Exchange (NYSE). This listing is to be discontinued as of July 2015.
Dresser-Rand’s business – together with Siemens’ compressor unit and the related service business – will form a new Dresser-Rand unit within Siemens Power and Gas Division with a primary focus on the oil and gas industry. Dresser-Rand’s current CEO, Vincent Volpe will lead the business through the initial integration phase. Starting September 2015, Christopher Rossi will take over the CEO position at the new business. Siemens manager Heribert Stumpf will serve as the unit’s CFO.