Weatherford International said Monday it will sell its laboratory services business for $205 million to a private equity group led by Houston’s CSL Capital Management.
The anticipated sale is part of financially struggling Weatherford’s ongoing effort to reduce its debt and make the global oilfield services firm more competitive again.
The deal includes the sale of Weatherford’s laboratory and geological analysis business, which studies oil and gas reservoirs and wells.
Weatherford said it will maintain a close, collaborative relationship with CSL Capital for research and geological services.
CSL Capital is an energy-focused private equity firm that said it plans to expand the lab business.
“Our intention is to invest in and grow this business to extend the leadership of this world-class laboratory and reservoir description company to serve the developing needs of the energy industry,” said Charlie Leykum, founding partner of CSL Capital.
CSL partnered with a fund operated by the Washington, D.C.-based The Carlyle Grouper the acquisition.
This article first appeared on the Houston Chronicle – an Energy Voice content partner. For more from the Houston Chronicle click here.