NEW YORK, April 8 (UPI) -- U.S. conglomerate General Electric said it had agreed to buy energy service company Lufkin Industries Inc. for about $3.3 billion.
The all-cash deal, which amounts to $88.50 per share, marks GE's return to its planned expansion into oil and gas businesses, The Wall Street Journal reported Monday.
Lufkin produces and services pumping systems that put pressure on an underground well when the natural pressure in the well wanes to the point that it can no longer push oil to the surface.
The deal is a 38 percent premium on Lufkin's closing price on Friday, the Journal said.
In part due to two acquisitions, Lufkin earned $819 million in profit in 2012, with revenue up 37 percent from 2011 to $1.28 billion.