Florence: GE Oil and Gas, a GE business, has announced that it has entered into an agreement to acquire the Hydril Pressure Control business from Tenaris.

Upon completion, the acquisition will expand GE's Oil and Gas portfolio and complement VetcoGray's Capital Drilling Equipment business.

The closing of the transaction is subject to conditions including the receipt of governmental and regulatory approvals, and is expected in the upcoming months. Reuters reported the value of the deal at $1.115 billion, ''on a debt-free basis.''

Hydril's Pressure Control business is one of the world's leading suppliers of pressure control equipment used in the oil and gas drilling industry, with a special focus on deep and ultra-deepwater applications. Its product line includes Blowout Preventer (BOP) systems, parts, and repair and field services to maintain its installed base of products.

The business, which is expected to generate over $400 million of sales in 2008, is headquartered in Houston, Texas, and employs over 750 people globally.

GE's Oil and Gas business is a leader in advanced technology equipment and services for all segments of the global oil and gas industry. Based in Florence, Italy, the company offers complete solutions for production, LNG, transportation, storage, refineries, and petrochemicals, as well as pipeline integrity solutions including pipeline-related software and pipeline asset management.

''This is another major step for GE Oil and Gas. This acquisition will expand our existing range of products and services and allows us to provide a broader offering of Capital Drilling Equipment to the increasingly complex offshore industry,'' said Claudi Santiago, President and CEO, GE Oil and Gas, in a statement on GE's website.

''Hydril has an outstanding reputation for quality and reliability, with an extraordinary track record built over more than seventy years serving the oil and gas industry. This, combined with VetcoGray's industry know-how and technology recognition, will accelerate the GE Oil and Gas presence in the fast growing deep water drilling industry.''

Paolo Rocca, chairman and CEO of Tenaris, commented, ''The Hydril pressure control business is one with excellent technology, an impressive team and solid prospects but has limited synergies with our core tubular business. We believe that its opportunities will be enhanced within GE, as part of its growing Oil and Gas business, and that this transaction is in the best interests of its employees and customers and our shareholders.''