Baker Hughes To Form Fracturing JV With Goldman Sachs, CSL Capital
Nov 29 (Reuters) - Baker Hughes Inc said it has reached an agreement with CSL Capital Management and Goldman Sachs Group Inc's merchant banking division to create a hydraulic fracturing company in which Baker Hughes will own a 46.7 percent stake.
Under terms of the agreement, oilfield services provider Baker Hughes will contribute its North American land cementing and hydraulic fracturing businesses, which comprises of assets in the United States and Canada.
Upon closing, CSL Capital Management will contribute its Allied Energy Services platform, which provides hydraulic fracturing and cementing services on land in North America.
CSL Capital Management and Goldman Sachs's West Street Energy Partners (WSEP) will together own 53.3 percent of the privately-held new company, and contribute $325 million in cash to the new company.
About $175 million will be used to strengthen the balance sheet of the new company, while the remaining $150 million will go to Baker Hughes.
The new company will operate under the Baker Hughes-owned BJ Services brand and will be headquartered in Tomball, Texas. Wells Fargo Securities LLC will serve as financial adviser to Baker Hughes.
(Reporting by Ahmed Farhatha in Bengaluru; Editing by Shounak Dasgupta)
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