Baker Hughes forms new fracturing company with Goldman Sachs, CSL Capital

|About: Baker Hughes Inc. (BHI)|By:, SA News Editor

Baker Hughes (NYSE:BHI) reaches an agreement with two P-E firms to create a new company consisting of its North American cementing and hydraulic fracturing operations under its BJ Services brand.

CSL Capital Management and Goldman Sachs-affiliated West Street Energy Partners will own a combined 53.3% of the new privately-held company and contribute $325M in cash, with $175M earmarked to strengthen the new company's balance sheet and the remaining $150M going directly to BHI.

BHI says the deal does not include its international pressure pumping businesses or its Gulf of Mexico offshore pressure pumping operations, which it will continue to operate.

BJ Services' CEO will be Warren Zemlak, currently the head of CSL’s Allied Energy Services platform, which will become part of the new entity.