Weatherford Sells Laboratory Business for $205MM
Weatherford International plc is selling its laboratory and geological analysis business as part of its strategy to increase shareholder value, the company announced Oct. 22.
Weatherford will divest the business to a group led by CSL Capital Management, L.P. for $205 million in cash. This includes divesting personnel and associated contracts.
This transaction is one in many of Weatherford’s planned divestitures to refocus the company’s portfolio on core businesses, which will reduce debt and increase shareholder value.
“We are happy to have signed an agreement with a group led by CSL Capital Management, who has a strong track record of investing in upstream oilfield services and who recognizes the importance of continuing our commitment to providing the highest level of service to our customers,” Mark A. McCollum, Weatherford’s CEO, said in a company statement. “Weatherford's laboratory business is a leader in the industry and its state-of-the-art equipment and its highly qualified workforce are well recognized in the industry. We believe that this transaction will unlock the full potential of this business for its customers and its employees.”
The transaction is expected to close this year at which time Weatherford will use the proceeds to reduce its debt.
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