Arcline Investment Management, a U.S. private equity firm founded by former Golden Gate dealmaker Rajeev Amara, said July 18 it would buy a unit of Baker Hughes, the oilfield services subsidiary of General Electric Co.
Though terms of the deal were not disclosed, the agreement comes after Arcline said in March it had raised $1.5 billion for a fund targeted at buying small to midsize industrial businesses. The firm defined these as companies with less than $1 billion in revenue.
Arcline has agreed to acquire Baker Hughes’ reciprocating comprehension division, which makes and services industrial engines and compressors built into natural gas pipelines operated by oil and gas companies.
Arcline said it plans to “aggressively invest” in the unit’s "long-standing, loyal employee base so that they can support every brand of our equipment operating in the field.
Apache, one of the largest operators in the Permian Basin, is looking to narrow its footprint in the basin through a full exit from the Eastern Shelf.
The acquisition of Jagged Peak will more than double Parsley Energy’s position in the Delaware Basin, where the companies expect to generate G&A savings of about $25 million within the first year.
Occidental Petroleum got closer this week to completing its divestiture goal with the $650 million sale of its remaining stake in Plains All American, but some analysts are saying it’s not enough.