Wednesday 24 October 2018

Weatherford International plc announced it has signed a definitive agreement to sell its laboratory services business to a group led by CSL Capital Management, L.P. 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.

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.