Pelican Energy Partners LP is pleased to announce an agreement to purchase the assets of the Surface Pressure Control Flow ("SPC Flow") business unit of the Oilfield Equipment segment of Baker Hughes. Pelican is working in cooperation with the management team of SPC Flow to carve-out the business unit as a stand-alone business wholly focused on providing pressure control products and services primarily in the US, with operations also in Australia, Papua New Guinea and Trinidad & Tobago.
The business unit consists of wellhead product sales and service as well as a rental offering of frac trees, valves and zipper manifolds. Baker Hughes will retain the Surface Pressure Control Projects business, consisting of surface and subsea product offerings in the Middle East, Africa, North Sea and Asia. Pelican has signed a binding agreement to purchase the SPC Flow business unit, which is expected to close in the fourth quarter of 2020.
Managing Partner of Pelican Mike Scott stated: "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."
Vice President of the SPC Flow business Rusty Justiss said: "This is an exciting opportunity and we are confident in our future as an independent company under Pelican's ownership. This team is one of the most experienced wellhead teams in the industry. This transaction allows us to go back to our roots, centered around the legacy of Wood Group Pressure Control. As a focused company with an empowered and experienced workforce, we will serve our customers even better."
Baker Botts acted as legal counsel to Pelican Energy Partners and McDermott Will & Emery served as legal counsel to Baker Hughes. BofA Securities acted as financial advisor to Baker Hughes.