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Lufkin Shareholders Approve GE Merger

Oilfield pump manufacturer Lufkin (UNKNOWN: LUFK.DL  ) announced yesterday that its shareholders attending the company's special meeting approved its acquisition by General Electric (NYSE: GE  ) , 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.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 28, 2013, at 3:22 PM, xahne wrote:

    yes GE endowed LUFKIN with about $1 billion in over payment.

    SO lets see the dividend hike from GE ( Immelt has been promising for the last 6 months)..

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Rich Duprey
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Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time.

Having made the streets safe for Truth, Justice and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. So follow me on Facebook and Twitter for the most important industry news in retail and consumer products and other great stories.

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3/4/2015 4:03 PM
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