On Monday, General Electric (NYSE:GE) announced that it will will acquire oilfield equipment maker Lufkin Industries (NASDAQ:LUFK) for $88.50 a share, a 38% premium over Lufkin’s last closing price. Not surprisingly, Luftkin shares jumped 37.5% early trading.
The deal — valued at $3.3 billion, including $200 million in debt — gives GE oil well pumping technology designed to boost production from older and more challenging oil wells, the Associated Press noted.
Oil and gas-related revenue now comprises 10% of GE’s annual revenue. The company has moved aggressively to expand its oil and has operations in the past eight years, more than tripling those revenues during that time.
Shares of GE slipped slightly in Monday morning trading.