General Electric (NYSE:GE) Acquires Oil Well Support Unit of Wood Group

General Electric (NYSE:GE) recently announced it has acquired the oil well support unit of John Wood Group for about $2.8 billion.

Claudi Santiago, President and CEO, GE Oil & Gas said, "With world-class products and people, Wood Group's Well Support division has excellent strategic fit with our business model of high technology engineering, manufacturing and services. The acquisition is another major step forward for GE Oil & Gas in executing our strategy to equip and serve our global oil and gas customers with the mission-critical equipment and solutions required to address their toughest technical challenges and growth objectives."

Shareholders of Wood Group have to approve of the deal, which is expected to close in the latter part of 2011.

General Electric said the unit should produce around $1.1 billion in revenue for the year.

The equipment sold by the unit is to extract oil from mature fields.

General Electric was trading at $21.54, down $0.21, or 0.98 percent, as of 11:51 AM EST.