Weatherford To Sell Pipeline And Specialty Services Business To Baker Hughes

(RTTNews) - Oilfield services provider Weatherford International Ltd. (WFT) has agreed to sell its pipeline and specialty services business to a unit of peer Baker Hughes Inc. (BHI) for a total consideration of $250 million, the two companies said Monday.

The total consideration includes $241 million in cash and $9 million in retained working capital. The sale is part of Switzerland-based Weatherford's previously announced plan to divest its non-core businesses.

Bernard Duroc-Danner, Chairman, President and Chief Executive Officer of Weatherford said, "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."

Martin Craighead, Chairman and Chief Executive Officer of Baker Hughes said, "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."

While reporting its financial results for the fourth quarter in late January, Weatherford said it has decided to reduce its core workforce by 7,000 employees, resulting in annualized savings of $500 million. Further, the company said that it in 2014, it was focused on growing its core businesses, making the cost base more efficient, and divesting non-core businesses as well as reducing net debt.

WFT closed Friday's trading at $16.78. In Monday's pre-market trades, the stock is up $0.13 or 0.77 percent to $16.91.

BHI closed Friday's trading at $62.11, up $0.76 or 1.24 percent on a volume of 6.48 million shares.