GE Plans to Expand Their Vision
General Electric is moving into a different segment approach in their expansion of its company. The focus is now towards the oil and gas industry; sales has grew 57 percent to $15.2 billion since 2009 which concludes becoming the world world’s largest crude producer.
Lufkin, a company that makes artificial lift equipments that brings crude and other material to the surface has rallying in revenue, which is up 37 percent compared to last year to $ 1.3 billion. Lufkin is a strong company that has over 4,500 employees in over 40 countries; also they specialize in equipments in submersible pumps, power transmission and automation system. GE attempts to buy Lufkin company to aid them in their expanding market of oil market. They are willing to pay $3.3 billion to purchase the company. GE will buy out this Lufkin Industries for a price of 13.5 times the value of Lufkin EBITA value.
The stock increase for Lufkin surged 38 percent, the largest increase since November 1990 due to this breaking news.
Written by: Victor To