Private equity firm Clearlake Capital Group LP is buying a division of Archer Ltd. for $244 million.
Clearlake is buying Archer’s North American rental and tubular division, which provide oil and gas equipment and services to exploration and production companies in the U.S. and the Gulf of Mexico. The unit provides rental drilling equipment as well as casing and tubing running products.
Archer plans to focus its product offerings on unconventional resources, says Fredrik Halvorsen, Archer CEO, in a statement. The Hamilton, Bermuda-based company specializes in drilling and well services for the oil industry. The company plans to use the proceeds from the deal to pay down outstanding balances on its credit facilities.
Simmons & Co. International was Archer’s financial adviser, while Andrews Kurth LLP was legal counsel. Jefferies LLC acted as Clearlake’s financial adviser, and Vinson & Elkins LLP offered legal advice.
In January, Clearlake closed its third fund with $785 million in equity commitments. The firm has about $1.4 billion in capital under management.