| DALLAS, TEXAS (March 12, 2007) - Riverstone Holdings LLC ("Riverstone") announced
today that a consortium led by Riverstone has signed a definitive agreement to
acquire Dresser, Inc. Riverstone is joined by First Reserve ("First Reserve")
and Lehman Brothers Co-Investment Partners ("Lehman Brothers") in the investor
group. First Reserve previously acquired Dresser in 2001 in partnership with Odyssey
Investment Partners, and will invest in the current transaction through its recently
formed First Reserve Fund XI, L.P. Riverstone will invest through its Carlyle/Riverstone
Global Energy and Power Fund III, L.P. The terms of the transaction were not disclosed.
Dresser, based in Dallas, Texas, is a leading manufacturer and marketer of
highly engineered products and services for energy industry and infrastructure
applications. The Company serves customers in the oil and gas, coal, refinery
and petrochemical processing, electrical power generation and natural gas industries,
as well as water and waste-water utilities.
John Lancaster, Managing Director of Riverstone, commented, "Dresser
has been a leader in the energy industry since its founding in 1880 and remains
extremely well positioned for growth. This investment is consistent with Riverstone's
objective to sponsor companies that benefit from the continued and increasing
investment in energy and related infrastructure globally. We are pleased that
First Reserve and Lehman Brothers are joining us in this investment, and look
forward to working together with them and the team at Dresser to build on the
Company's legacy of providing top-tier products and services."
Patrick M. Murray, Chairman and CEO of Dresser, commented, "We are excited
about the new ownership of Dresser. We believe our dedicated and talented employees,
our worldwide footprint, blue-chip customer base, and strong product portfolio
position us very well for continued growth in the future."
Latham & Watkins provided legal advice and Lehman Brothers served as financial
advisor to the consortium.
About Dresser
Dresser is a leader in providing highly engineered infrastructure products
for the global energy industry. The Company enjoys leading positions in a broad
portfolio of products including valves, actuators, meters, switches, regulators,
piping products, natural gas-fueled engines, retail fuel dispensers and associated
retail point of sale systems, and air and gas handling equipment. Leading brand
names within the Dresser portfolio include Dresser Wayne® retail fueling
systems, Waukesha® natural gas-fired engines, Masoneilan® control valves,
Mooney® regulators, Consolidated® pressure relief valves, and Roots®
blowers and rotary gas meters. With manufacturing and customer service facilities
located strategically in 20 countries and a sales presence in over 100 countries,
Dresser is able to meet customer needs throughout the world. For more information
on Dresser, visit www.dresser.com.
About Riverstone Holdings LLC and The Carlyle Group
Riverstone Holdings LLC and The Carlyle Group are the co-general partners of
Carlyle/Riverstone Global Energy and Power Funds. Riverstone, a New York-based
energy and power focused private equity firm founded in 2000, has $8.0 billion
under management. Riverstone conducts buyout and growth capital investments
in the midstream, upstream, power, oilfield services, and renewable sectors
of the energy industry. To date, the firm has committed more than $5.0 billion
to more than 35 investments across each of these five sectors, representing
companies with nearly $50 billion of assets. The Carlyle Group is a global private
equity firm with $51.8 billion under management. Carlyle invests in buyouts,
venture and growth capital, real estate and leveraged finance in North America,
Europe and Asia. Since 1987, the firm has invested $24.0 billion of equity in
576 transactions. For more information on Riverstone and Carlyle, see www.riverstonellc.com
and www.carlyle.com.
About First Reserve
First Reserve is the oldest and largest private equity firm specializing in
the energy industry. First Reserve was the first private equity investment firm
to actively pursue building a broadly diversified global investment portfolio
of companies involved in the various sectors of the energy industry. Since 1992,
First Reserve has raised over $12.7 billion for its buyout-focused funds. Throughout
its 25-year history, the strong franchise that the firm has developed by investing
exclusively in companies involved in the energy industry has served as a competitive
advantage for First Reserve. For more information on First Reserve, visit www.firstreserve.com.
About Lehman Brothers
Lehman Brothers Co-Investment Partners is a $1.6 billion fund which invests
alongside premier private equity funds globally. Founded in 1850, Lehman Brothers
is a leading investment bank with activities in equity and fixed income sales,
trading and research, investment banking, private investment management, asset
management, and private equity. The firm is headquartered in New York, with
regional headquarters in London and Tokyo, and operates in a network of offices
around the world. For more information on Lehman Brothers, visit www.lehman.com.
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