(Bloomberg) – Baker Hughes is exploring a potential sale of its Waygate Technologies unit, which provides industrial testing and inspection equipment, people with knowledge of the matter said.
Baker Hughes CEO Lorenzo Simonelli
The world’s second-biggest oilfield contractor is working with advisers to study a possible divestment of the Waygate business, which could fetch around $1.5 billion, according to the people. A sale process could kick off in the next few months and attract interest from private equity firms, the people said, asking not to be identified because the information is private.
Deliberations are ongoing and there’s no certainty they will lead to a transaction, the people said. A representative for Baker Hughes declined to comment.
Waygate, based in Hürth, Germany, makes radiographic testing systems, industrial CT scanners, remote visual inspection machines and ultrasonic testing devices. It operates in more than 80 countries and is known for brands including Krautkrämer, phoenix|x-ray, Seifert, Everest and Agfa NDT.
The company was started in 2004 as GE Inspection Technologies. It’s been under the current ownership since 2017, when General Electric Co. combined its oil and gas division with Baker Hughes in a $32 billion deal.
Baker Hughes is selling the non-core asset after agreeing last year to buy industrial equipment maker Chart Industries Inc. for about $9.6 billion in one of its biggest-ever acquisitions. Chief Executive Officer Lorenzo Simonelli said in October last year that Baker Hughes is undertaking a “comprehensive evaluation” of its capital allocation focus following the Chart deal in order to boost shareholder value.
The pending sale would join other sizeable corporate divestments in Europe. Volkswagen AG has launched the sale of a majority stake in its heavy diesel engine maker Everllence, while Continental AG is selling its Contitech business.
