GE to buy Cameron's reciprocating compression division for $550M

|By:, SA News Editor

GE earlier today said it agreed to acquire Cameron International's (CAM) reciprocating compression unit for $550M, in a deal GE sees as strengthening its recently formed downstream technology solutions unit.

The development of shale fields, especially in North America, has increased demand for high-speed reciprocating compressors used in gas gathering, gas lift and injection, transmission and storage; CAM's unit had sales of ~$355M in 2012.

CAM says it expects to post a loss of ~$100M on the sale, reflecting the write-off of goodwill.