Selling pipes
18 Mar 2003
Halliburton has sold its Wellstream business for $136 million to Candover Partners, a European buyout group, as part of its plan to divest its non-strategic assets.
The transaction is an asset sale which includes manufacturing plants in Newcastle upon Tyne in the UK and Panama City, FL as well as certain assets and contracts in Brazil.
Candover will invest equity to the value of 70 million Euros, with senior debt and mezzanine finance totalling 71 million Euros being arranged and underwritten by Bank of Scotland Corporate Banking. The incoming management team will also take an equity stake in the business.
Founded in 1983, Wellstream is a manufacturer of piping systems used for the transportation of oil and gas from subsea wells. Its major customers include Petrobras, Norsk Hydro, ExxonMobil, Shell and BP.
