BAAR, Switzerland, Oct. 22, 2018 /PRNewswire/ -- Weatherford
International plc (NYSE: WFT) (the "Company" or "Weatherford")
today announced it has signed a definitive agreement to sell its
laboratory services business to a group led by CSL Capital
Management, L.P. ("CSL Capital") for $205
million in cash.
Under the agreement, Weatherford will divest its laboratory and
geological analysis business, including personnel and associated
contracts. After exiting the laboratory business, Weatherford
will continue to maintain a close, collaborative relationship with
CSL Capital that will enable it to continue to provide services to
their joint customers.
The transaction is expected to close before year-end, subject to
regulatory approvals, consents and other customary closing
conditions. The transaction is subject to a customary post-closing
working capital adjustment. Upon closing, Weatherford will use the
proceeds to reduce its debt.
"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," said Mark A.
McCollum, President and Chief Executive Officer of
Weatherford. "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."
"We are pleased to enter in to this transaction with Weatherford
and we are excited to work with the talented employees of
Weatherford Laboratories. Our intention is to invest in and grow
this business to extend the leadership of this world-class
laboratory and reservoir description company to serve the
developing needs of the energy industry," said Charlie Leykum, Founding Partner of CSL Capital.
"CSL Capital will work closely with Weatherford over the next few
months to ensure a seamless transition of the operations of the
business to minimize any impact to customers, employees and
suppliers."
This transaction is one in a series of planned divestitures
intended to maximize Weatherford shareholder value by refocusing
the Company's portfolio on core businesses most closely aligned
with its long-term strategy and to reduce its debt.
CSL Capital partnered with the Carlyle Energy Mezzanine
Opportunities Fund II, L.P. ("Carlyle") to complete this
acquisition. Carlyle will provide minority common equity and growth
capital.
About Weatherford
Weatherford is one of the largest
multinational oilfield service companies providing innovative
solutions, technology and services to the oil and gas industry. The
Company operates in over 90 countries and has a network of
approximately 740 locations, including manufacturing, service,
research and development, and training facilities and employs
approximately 28,450 people. For more information,
visit www.weatherford.com and connect with Weatherford
on LinkedIn, Facebook, Twitter and YouTube.
About CSL Capital
CSL Capital is a
SEC-registered investment firm focused on energy services and
equipment businesses in the U.S. Headquartered in
Houston, Texas, CSL Capital was
founded in early 2008. The current CSL Capital portfolio includes
several de novo, growth, recapitalization, and other investments.
CSL Capital's partners include financial institutions, endowments,
foundations, and family offices, among other institutional
groups. Since its 2008 inception, CSL Capital has raised in excess
of $1.5 billion in equity capital and
commitments across various investment vehicles. For more
information, please visit www.cslenergy.com.
About The Carlyle Group
The Carlyle Group (NASDAQ:
CG) is a global alternative asset manager with $210 billion of assets under management across
335 investment vehicles as of June 30,
2018. Carlyle's purpose is to invest wisely and create value
on behalf of its investors, many of whom are public pensions.
Carlyle invests across four segments – Corporate Private Equity,
Real Assets, Global Credit and Investment Solutions – in
Africa, Asia, Australia, Europe, the Middle
East, North America and
South America. Carlyle has
expertise in various industries, including: aerospace, defense
& government services, consumer & retail, energy, financial
services, healthcare, industrial, real estate, technology &
business services, telecommunications & media and
transportation. The Carlyle Group employs more than 1,625 people in
31 offices across six continents. www.carlyle.com
Contacts:
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Christoph
Bausch
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+1.713.836.4615
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Executive Vice
President and Chief Financial Officer, Weatherford
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Karen
David-Green
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+1.713.836.7430
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Senior Vice
President, Stakeholder Engagement and Chief Marketing Officer,
Weatherford
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Kent
Jamison
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+1.281.407.0693
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General Counsel, CSL
Capital Management
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