Oilfield pump manufacturer Lufkin (NASDAQ: LUFK) announced yesterday that its shareholders attending the company's special meeting approved its acquisition by General Electric (GE 0.21%), though vote tallies were not provided.
As a result of the vote, shareholders will receive $88.50 in cash for each share of Lufkin common stock owned at the closing, which is expected to be completed as soon as practicable. The company itself will become a wholly owned subsidiary of GE.
Using funds received from its sale of NBC, General Electric agreed to buy Lufkin in April for $3.3 billion, with the per-share purchase price representing a 38% premium at the time of the announcement. Analysts estimate GE paid a bit of a premium, paying about 13.5 times estimated 2013 EBITDA compared to a median of 11.5 times trailing-12-month EBITDA in a survey of more than 30 comparable deals over the last 10 years, according to Bloomberg.
Lufkin also said shareholders approved the non-binding, advisory proposal regarding merger-related compensation for executives.
In addition to oilfied pumps, Lufkin manufactures well automation systems, gas lift and plunger lift systems, progressing cavity pumps, well completion products, foundry castings, and power transmission products.
