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.