1 December 2014
READ MORE WEATHERFORD'S PRODUCTS
DRILLING FLUIDS AND DRILLING WASTE MANAGEMENT
PRODUCTION CHEMICALS INTERMEDIATES
PROCESS AND COMPRESSION CHEMICALS
DETAILS
announces today that it has signed an agreement to
acquire
Weatherford International’s oilfield chemicals business,
known as
Engineered Chemistry
and its drilling fluids business, known as
Integrity Industries.
The addition of these two businesses provide Lubrizol
with a more significant footprint
in the $20 billion oilfield chemicals business and
more importantly,
extensive applications experience and end-user relationships.
Engineered Chemistry
supplies additives and fluids for a range of oilfield activities, including
cementing, drilling, flow assurance and fracturing.
It offers chemistry expertise to solve problems
throughout the oil and gas drilling process.
The business consists of
a core manufacturing and research organization
which supports a global field distribution network.
Engineered Chemistry was built through a series of acquisitions
over the past 12 years and
is headquartered in Houston, TX.
It operates 10 sites located predominantly in North America.
Weatherford International plc (NYSE: WFT)
has signed a definitive agreement
with an affiliate of The Lubrizol Corporation (“Lubrizol”),
a Berkshire Hathaway company,
for the sale of the Company’s
engineered chemistry and Integrity drilling fluids business.
The businesses will be sold for $750 million in cash,
subject to customary purchase price adjustments,
plus a potential increase of $75 million for an earnout
that is tied to the post-closing performance of the businesses.
Weatherford’s engineered chemistry business
provides chemical treatments for oil and
gas production and produced waters as well as
additives for drilling, workover and stimulation operations,
while its Integrity drilling fluids business
includes
drilling fluid systems and additives
for enhanced performance of drilling operations.
The sale is subject to customary closing conditions
and regulatory approvals and
is expected to close before year end 2014.
Proceeds from the sale will be used to pay down debt.
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