Weatherford sells pipeline and specialty services business

Weatherford International Ltd. and Baker Hughes Incorporated have announced today that they 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 US$ 250 million, including US$ 241 million in cash and US$ 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 maximise the potential of this business," stated Bernard J. Duroc-Danner, Chairman, President and Chief Executive Officer of Weatherford.

"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."

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/24032014/weatherford_and_baker_hughes_announce_sale_and_purchase_of_pipeline_and_specialty_services_business/