FMC Technologies, Inc. (FTI) said late Wednesday that it plans
to buy Direct Drive Systems of Cerritos, California in a deal
valued at about $120 million.
FMC, which provides technology solutions such as subsea
production and processing systems to the energy industry, said the
transaction is expected to close in the fourth quarter of this
year. The deal is expected to be accretive in 2011.
Direct Drive provides high-speed, high-power synchronous motors
and generators for the oil and gas industry.
"Our combined expertise and innovative technologies will allow
for the creation of next-generation pumping and compression
solutions, strengthening FMC's market-leading position in the
important area of increased oil recovery," said Peter D. Kinnear,
FMC's chairman, president and chief executive, in a statement.
"Our talented employees and innovative designs are a strong
strategic fit with FMC Technologies, and we will now have
additional growth opportunities due to their broad global reach,"
Kevin McGlensey, president and chief executive of DDS.