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Weatherford completes USD 750m sale of drilling fluids business

05th January 2015

Weatherford International 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 USD 750m on Wednesday (31/12/14), subject to a customary post-closing working capital adjustment

Weatherford completes USD 750m sale of drilling fluids business
'The divestments are another step in Weatherford's previously announced plans to monetise the company's non-core businesses' - Weatherford CEO

Weatherford may also receive a potential increase of USD 75m from an earnout tied to the post-closing performance of the disposed businesses during the twelve month period after the closing date.

"We are pleased with the closing of these transactions,” said Bernard J. Duroc-Danner, chairman, president and chief executive officer of Weatherford.

“The divestments are another step in Weatherford's previously announced plans to monetise the company's non-core businesses. These transactions bring our total realised cash divestiture proceeds to over USD 1.7bn for 2014, significantly exceeding our previously stated divestment target of USD 1bn. 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."

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. 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.

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