Engineering company Curtiss-Wright Corp. said on Monday that it is buying equipment maker Cimarron for $135.1 million in cash in an attempt to expand its offerings for oil and gas production, particularly in North America.
Cimarron, based in Norman, Okla., makes equipment for the oil and gas industry. Curtiss-Wright makes pumping and metal treatments for the aerospace and defense industries, and has increasingly been branching into the fast-growing oil and gas sector too.
The company said that acquiring Cimarron Energy Holding Co. LLC is another move in that direction. Curtiss-Wright currently serves refiners, but buying Cimarron will help it get it into business with petroleum drillers. Cimarron also has products that deal with environmental issues around hydraulic fracturing, or fracking, where water and sand are injected underground to break apart rock, freeing oil and gas.
The U.S. will become the world's largest oil producer by around 2020 as new technologies help develop reserves, predicted the International Energy Agency, an energy watchdog, earlier this month. The country's natural gas output has also boomed.
Shares of Curtiss-Wright, which is based in Parsippany, N.J., rose 21 cents to $30.98 in afternoon trading.