Weatherford International plc (WFT) closed the previously announced sale of the Company’s engineered chemistry and Integrity drilling fluids businesses to an affiliate of The Lubrizol Corporation, a Berkshire Hathaway company, for a purchase price of $750 million, subject to a customary post-closing working capital adjustment. Weatherford may also receive a potential increase of $75 million from an earnout tied to the post-closing performance of the disposed businesses during the twelve month period after the closing date. Cash proceeds from the sale will be used to repay or repurchase debt.
In addition, on December 23, 2014, the Company completed the disposition of all of its shares of Proserv Group Inc. (“Proserv”). As previously announced, Proserv was acquired by affiliates of investor Riverstone Holdings LLC, in partnership with Proserv management. Proceeds received by Weatherford were used to repay or repurchase debt.
Bernard J. Duroc-Danner, Chairman, President and Chief Executive Officer of Weatherford stated: “We are pleased with the closing of these transactions. The divestments are another step in Weatherford’s previously announced plans to monetize the company’s non-core businesses. These transactions bring our total realized cash divestiture proceeds to over $1.7 billion for 2014, significantly exceeding our previously stated divestment target of $1 billion. With these proceeds, the level of debt that Weatherford carries at year end will be well below our own targets and de-risks the company substantially ahead of a cyclically challenged year in the industry.”
Weatherford is an Irish-based, multinational oilfield service company. Weatherford’s product and service portfolio spans the lifecycle of the well and includes Well Construction, Formation Evaluation, Completion and Artificial Lift. The Company operates in over 100 countries and has a network of 1,400 manufacturing, service, research and development and training facilities worldwide.