Demag - Neuman & Esser

neumanesser

Demag - Neuman & Esser

Verdichter gebaut in Berlin bis Ende 1995

(recips built in Berlin

up to the end of 1995)

The Acquisition of the PENN Pump

Process Gas Compressors:

NEUMAN & ESSER GROUP (NEA GROUP) is growing

again, with the addition of a new product line to complement

the existing family of reciprocating compressor

products. On Sept. 15, 2010, NEUMAN & ESSER

Investments, Inc., the NEA GROUP holding company for

the Americas, closed on a transaction to acquire the

complete ownership of the Pennsylvania Process

Compressor (PPC) aftermarket business from the

CAMERON International, Inc. - Process and Compression

Systems Group.

The Pennsylvania Process Compressor product line,

also commonly known as PENN, PENN PUMP, or PPC,

includes the API 618 Reciprocating Compressor products

originally produced by the Pennsylvania Pump and

Compressor Company in Easton, Pennsylvania. In the

United States, Pennsylvania is known as the “Keystone

State”, and the addition of the PENN line is clearly viewed

as a keystone for the family of reciprocating compressor

product lines owned and licensed by the NEUMAN &

ESSER GROUP.

NEA GROUP will operate the PENN after-market business

under its worldwide OEM aftermarket organization,

NEAC Compressor Service, with NEAC Compressor

Service USA, Inc. taking over the prime operating and

production responsibilities.

“The acquisition of the PENN product line is an excellent

addition to our existing NEAC Compressor Service aftermarket

business for our NEUMAN & ESSER compressor

line, as well as all of our other legacy compressor

lines”, said Alexander Peters, Managing Partner of the

NEUMAN & ESSER GROUP.

NEAC Compressor Service is also the aftermarket OEM

for the former compressor brand legacies: Chicago

Pneumatic, Linde, Demag, KSB, Erhardt & Sehmer,

Halberg, Esslinger, Wurzen, and Borsig (recips built in

Berlin up to the end of 1995).

The NEAC Compressor Service aftermarket business

includes all activities in regard to OEM Spare Parts,

Field Service & Maintenance, Component Repairs,

A Keystone for NEAC

P

P CTM

PENN

Process

Compressors

Demag

Upgrading, Revamping, and Technical Support of existing

compressor packages.

There had been casual discussions between NEUMAN

& ESSER and CAMERON Intern-ational on a possible

acquisition of the PENN line for several years. However,

it was not until the last ten months that discussions became

more serious in nature. The purchase agreement

was signed at the CAMERON Process and Compression

Systems offices in Houston, TX, on Aug. 12, 2010.

Alexander Peters represented NEA GROUP and Robert

Rajeski, President of CAMERON Compression Systems,

signed on behalf of CAMERON. Mr. Rajeski was very

pleased that CAMERON was able to come to terms with

the NEA GROUP on the PENN sale saying, "NEUMAN

& ESSER has a long history of providing high quality

products to the market place and has shown the ability

to acquire other legacy brands with good success.”

Bernd Wagner, the Managing Director of NEAC

Compressor Service GmbH, and leader of the global

NEAC Compressor Service aftermarket business provided

his insight. “We were very pleased that we could

add the PENN line to our portfolio. This is a continuation

of our global OEM aftermarket strategy to look for opportunities

to grow our business, both organically and

through acquisitions when they are a good fit within our

typical market segments and a good match with the

capabilities of our global NEAC entities. In this case, the

PENN acquisition especially strengthens our position in

the North American reciprocating compressor market.”

From 1953 to 1995, over 5,600 compressors were

manufactured in the United States under the PENN

brand with approximately 90% of these units being sold

to end users in North America. As such, the PENN

aftermarket business will be operated by the NEA

GROUP’s aftermarket entity in the United States, NEAC

Compressor Service USA, Inc., located in Houston,

Texas. Internationally, there are also a good number of

compressors on virtually every continent, with significant

populations in Southeast Asia, the Middle East, and

Europe.


P

P C TM

These international customers will be primarily serviced

by their local NEAC Compressor Service locations that

already provide their support for all of the existing

NEUMAN & ESSER product lines.

Since PENN compressors were typically built to API 618

design requirements, most of these compressors are

found in downstream applications in oil refining, chemicals,

air separation, and the food and beverage industries.

Currently, it is estimated that approximately 3,000

of these compressors are still active worldwide with

approximately 1,000 different customers.

Brian Bertelsen, President of NEAC USA, commented,

"The PENN acquisition is a great fit for our US operation.

This product is very similar to the Chicago

Pneumatic line so we should have a smooth

transition and be able to step right in to

meet our new PENN customers’ needs.

We will add a significant number of

machines to our active compressor

population and the PENN product

will allow us to demonstrate

the NEA GROUP’s expertise

and capabilities to

some new customers

as well."

This take-over will certainly

not be the last

addition to the portfolio,

for as long as the

compressor market

remains in a continual

state of development

and change, NEA

GROUP will continue

to seek out opportunities

to build on its market

position as a global

player and its reputation

for quality and customer

service in compressor

technology.

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