Former Halliburton unit Dresser sold |
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Mon, 12 Mar 2007 18:53
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DALLAS (AP) - The owners of Dresser Inc. said Monday they have agreed to sell the former Halliburton Co. unit to private equity firm Riverstone Holdings LLC for an undisclosed price.First Reserve and Odyssey Investment Partners LLC announced the sale, but First Reserve said it would maintain an investment in Dresser through a recently formed fund.In 2001, First Reserve and Odyssey paid $1.1 billion to Halliburton for a controlling interest in Dresser. Halliburton had paid $7.7 billion for Dresser in 1998, when Vice President Dick Cheney was Halliburton's chief executive.Dallas-based Dresser makes equipment and provides services to energy companies and water and wastewater utilities.The unit proved a problem for Halliburton, which inherited Dresser's exposure to massive asbestos claims. Halliburton paid about $4 billion cash and stock to settle more than 300,000 asbestos-related lawsuits and put Dresser into Chapter 11 bankruptcy protection.First Reserve said it would join Riverstone and Lehman Brothers Co-Investment Partners in the new Dresser ownership group with an investment by its First Reserve Fund XI LP.Ben Guill, president of First Reserve, said the continued investment in Dresser was consistent with his company's strategy of investing in energy infrastructure. He said Dresser is well positioned to grow.New York-based Riverstone Holdings was formed in 2000 and has $8 billion under management. It makes buyouts and investments in the energy industry.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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