Weatherford International Ltd. and Baker Hughes Incorporated have signed an agreement for the sale of Weatherford’s pipeline and specialty services business to a subsidiary of Baker Hughes for a total consideration of $250 million, including $241 million in cash and $9 million in retained working capital. The sale is part of Weatherford’s previously announced plan to divest its non-core businesses.
“This sale is an important first step towards Weatherford’s refocus on its core businesses and becoming a leaner, more efficient and stronger company. We are pleased to have reached agreement on the sale of this business to Baker Hughes, which complements their existing process and pipeline services business. We believe that Baker Hughes is really well positioned to maximize the potential of this business,” stated Bernard J. Duroc-Danner, Chairman, president and CEO of Weatherford.
Weatherford hopes to sell the four divisions by the end of 2014, the company has said in filings with the Securities and Exchange Commission. The company expects the four divisions to generate a combined $1.1 billion to $1.3 billion in revenue in 2014, according to a presentation it gave Monda, according to a report by Fuel Fix.Â
“The substantial demand for Baker Hughes’ process and pipeline services indicates the growing importance of midstream infrastructure in supporting the expansion and sustainability of the energy industry,” said Martin Craighead, Chairman and Chief Executive Officer of Baker Hughes. “The addition of Weatherford’s pipeline and specialty services not only will augment our asset assurance and integrity capabilities, but also will help us leverage our existing technologies and global supply chain network into profitable, growing markets.”
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