Davis Polk is advising Baker Hughes Incorporated on an agreement to create a North American land pressure pumping company with CSL Capital Management and West Street Energy Partners (WSEP), a fund managed by the Merchant Banking Division of Goldman Sachs. Under the terms of the agreement, Baker Hughes will contribute its North American land cementing and hydraulic fracturing businesses. Upon closing, CSL Capital Management will contribute its Allied Energy Services platform. CSL Capital Management and WSEP will together contribute $325 million in cash to the new company. CSL Capital Management and WSEP together will own 53.3% of the new company, and Baker Hughes will retain a 46.7% ownership stake. The agreement is subject to customary regulatory approvals.

Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the world-wide oil and natural gas industry.

The Davis Polk corporate team includes partners George R. Bason Jr. and Michael Davis and associates Laura C. Turano, Darren M. Schweiger, Albert Zhu and W. Soren Kreider IV. Partner Frank J. Azzopardi is providing intellectual property and technology advice. Partner Avishai Shachar and associate Anthony L. Oliva are providing tax advice. Counsel Betty Moy Huber is providing environmental advice. All members of the Davis Polk team are based in the New York office.