Riverstone-led consortium in energy deal

A group consisting of Riverstone, First Reserve and Lehman Brothers Co-Investment Partners has made plans to buy infrastructure products maker Dresser for an undisclosed amount.

A consortium of private equity firms led by Riverstone Holdings has agreed to acquire Dresser, a producer of infrastructure products for the global energy industry. Also taking part in the transaction were First Reserve and Lehman Brothers Co-Investment Partners. The terms of the deal were not disclosed.

Riverstone’s investment comes from the Carlyle/Riverstone Global Energy and Power Fund III, which closed at $3.8 billion in March of 2006. Riverstone is a co-general partner of the fund with global private equity firm The Carlyle Group.

First Reserve, working with Odyssey Investment Partners, acquired Dresser from global oilfield and engineering company Halliburton in 2001. The firm is making the current investment with First Reserve Fund XI, which closed at $7.8 billion in July of 2006.

Founded in 1880 and based in Dallas, Texas, Dresser is led by its chairman and chief executive officer Patrick Murray. Its products include valves, actuators, meters, switches, regulators, piping products, natural gas-fueled engines, retail fuel dispensers and air and gas handling companies. Its brand names 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. The company’s clients come from the oil and gas, coal, refinery and petrochemical processing, electrical power generation, natural gas, water and waste-water utilities industries. It has manufacturing and customer service facilities in 20 countries and a sales presence in about 100 countries.

Founded in 2000 and based in New York, Riverstone specialises in buyout and growth capital investments in the energy and power industries. It has about $8 billion in assets under management. The firm joined The Carlyle Group and Dominion Energy Services, a developer of renewable fuel refineries, to establish a bio refinery in Alberta, Canada last November.

Founded in 1983, Greenwich, Connecticut-based private equity firm First Reserve, invests exclusively in the energy industry. It has four active funds and about $12.5 billion under management. The firm sold energy service provider Aquilex to New York-based firm Harvest Partners for an undisclosed amount in early February.

Lehman Brothers Co-Investment Partners is a $1.6 billion fund associated with New York-based global investment bank Lehman Brothers. The fund invests with global private equity funds worldwide. The fund acquired a 36 percent stake in Carlyle-owned Firth Rixson, a provider of forged, cast and specialist metal products for the aerospace and industrial markets for an undisclosed amount last August.