Pelican plans to carve out the business unit into a stand-alone business focused mainly on the US market
The SPC flow unit comprises wellhead product sales and service. (Credit: Adam Radosavljevic from Pixabay)
US-based private equity fund Pelican Energy Partners has agreed to acquire the surface pressure control flow (SPC Flow) business unit of energy services company, Baker Hughes.
The financial details of the transaction have not been disclosed by the companies. The SPC flow business unit is a part of oilfield equipment segment of Baker Hughes.
Working the management team of SPC Flow, Pelican intends to carve out the business unit into a stand-alone business.
It will focus on providing pressure control products and services mainly in the US, with a presence in Australia, Papua New Guinea and Trinidad & Tobago.
The SPC flow unit comprises wellhead product sales and service along with a rental offering of frac trees, valves and zipper manifolds.
Baker Hughes will retain the surface pressure control projects business
Pelican managing partner Mike Scott said: “This carveout transaction will enable the business to be a more focused, nimble and responsive company.
“We are glad to be supporting this management team that strongly believes that as a more entrepreneurial company, they will be better positioned to compete and win in these challenging markets.”
The company said that the transaction is estimated to be concluded in the fourth quarter of the year.
Upon completion of the deal, Baker Hughes will retain the ‘Surface Pressure Control Projects’ business of providing surface and subsea product in the Middle East, Africa, North Sea and Asia.
For the deal, Baker Botts served as legal counsel to Pelican Energy.
McDermott Will & Emery acted as legal counsel and BofA Securities served as financial advisor to Baker Hughes in the transaction.
In July this year, General Electric (GE) has launched a programme to sell its remaining stake of 36.6% in its subsidiary Baker Hughes within a period of three years.