NEW YORK (AP) -- General Electric Co. will buy the oilfield equipment maker Lufkin Industries, Inc. for about $3 billion, furthering an effort by GE to grow its oil and gas operations.
GE said Monday it would pay Lufkin shareholders $88.50 per share in the all-cash deal, a 38 percent premium over Lufkin's closing price on Friday of $63.93.
The companies value the deal at $3.3 billion.
CEO Jeff Immelt is in the process of transforming GE from a sprawling conglomerate to one that is more tightly focused on providing services and equipment to industrial customers. The company has shed divisions such as NBC Universal and is shrinking its banking operations.
At the same time, GE is trying to grow its energy-related operations.
Lufkin, based in Lufkin, Texas, makes pumping equipment that helps drillers extract more oil out of older oil fields.