Peter Brotherhood specializes in the design and manufacture of steam turbines, reciprocating gas compressors, gas engine packaged combined heat and power systems (CHP), and gearboxes. The company's primary clients are in the worldwide oil and gas industry, specifically marine and floating production, storage, and offloading (FPSO), refinery, petrochemical, combined cycle/co-generation, and renewable energy industries. Peter Brotherhood, with a manufacturing facility in the U.K., traces its beginnings to 1867. It has an installed equipment base estimated at approximately 750 units.
The Peter Brotherhood business had sales of approximately pounds sterling 50.5 million (British pounds) in fiscal year 2007.
This acquisition is consistent with Dresser-Rand's business strategy that focuses on acquisitions that strengthen and enhance its core capabilities, add new products, services, and technologies, and provide access to new markets or enhance current market positions. The acquisition is complementary to Dresser-Rand's products and services strategies, strengthens the company's position in the European served area, and increases the size of the company's industry-leading installed base of equipment.
Under the agreement, Dresser-Rand will acquire the Peter Brotherhood assets for approximately pounds 31.1 million net of cash acquired. The agreement includes the potential for additional consideration based on an Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) earn-out for the fiscal year ended November 30, 2008.
"Dresser-Rand and Peter Brotherhood have decades of experience providing innovative solutions in the energy conversion markets," said Vincent R. Volpe Jr., president and CEO of Dresser-Rand. "Both companies have maintained solid reputations for quality, efficiency, economy, and reliability.
"Leveraging these attributes and combining technical expertise, research and development capabilities, and our combined worldwide sales presence will enable us to offer a comprehensive line-up of steam turbine and reciprocating gas compressor products backed by outstanding OEM parts and service."
Stephen Fitzpatrick, the managing director of Peter Brotherhood said, "Dresser-Rand recognized the success we have forged by a clear set of values focusing on customer care and satisfaction and the delivery of great products by a highly motivated and successful workforce. We are equally proud to be associated with Dresser-Rand."
Dresser-Rand is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. The company operates manufacturing facilities in the U.S., France, U.K., Germany, Norway, India, and China, and maintains a network of 30 service and support centers covering more than 140 countries.