FMC Technologies acquires Direct Drive Systems

FMC Technologies, Inc., a provider of technology solutions for the energy and other industrial markets, has acquired Direct Drive Systems, Inc., a manufacturer of permanent magnet motors and generators. Both the companies are based in the US.

Announcement (September 9, 2009):

FMC Technologies has agreed to acquire Direct Drive.

Energy Ventures III LP, a venture capital fund, has agreed to sell its stake in Direct Drive to FMC Technologies.

The transaction is valued at approximately $120 million and expected to close in the fourth quarter of 2009.

Deal Value (US$ Million) 120
Deal Type                Acquisition
Sub-Category             Majority Acquisition
Deal Status              Completed: 2009-11-02

Deal Participants

Target (Company)   Direct Drive Systems, Inc.
Acquirer (Company) FMC Technologies, Inc.

Deal Rationale

The combined expertise and innovative technologies of FMC and Direct Drive would allow for the creation of next-generation pumping and compression solutions, strengthening FMC's position in the important area of increased oil recovery.

Related terms: acquisition, energy, industrial, manufacturer, oil, technology, venture capital