GE to Acquire Oceaneering Product Line, Shares Gain Slightly - Analyst Blog

Diversified business conglomerate General Electric Company (GE) recently decided to acquire the Subsea Electric Actuator product line of Oceaneering International, Inc. for an undisclosed amount. Based in Houston, TX, Oceaneering offers engineered services and hardware to customers who operate in marine, space, and other environments. Shares of General Electric increased marginally on Dec 17, following the announcement. The transaction is expected to be completed in the first quarter of 2015 with the product line marketed under the Oceaneering Subsea All Electric and Ifokus brand.

The transaction is a win-win situation for both the companies. This acquisition expands the existing Oil & Gas Subsea controls portfolio of General Electric, enhances its remote sub-sea production and processing capabilities and speeds up electrification in oil and gas beneath the surface of the sea. This innovative technology is faster to operate for processing applications and can be effortlessly integrated into a customer's existing controls, communications and power network.

The Subsea Electric Actuators are expected to lower the overall system costs and are more suited for complex extraction environments. Oceaneering's engineering team will join General Electric's Oil and Gas division. Oceaneering will have the access to General Electric's global resources and the new subsea controls technology is expected to bring Ifokus technology to full-scale commercial production.

General Electric is one of the largest and most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and industrial products. Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital.

General Electric currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look include Federal Signal Corp (FSS) carrying a Zacks Rank #1 (Strong Buy), and Carlisle Companies Incorporated (CSL) and EnPro Industries, Inc. (NPO), both carrying a Zacks Rank #2 (Buy).
 

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