TRW Inc. has agreed to sell its Reda Pump Division and another energy-industry subsidiary to a British conglomerate for $300 million, the parties said Tuesday.
Bartlesville-based Reda Pump and TRW's Oilwell Cable Division will be taken over by Camco Inc., the Houston subsidiary of Pearson PLC of Great Britain, officials said.
Reda Pump will remain an independent division of Camco under current management with no major changes in work force or production, Camco chief executive Gil Tausch said.
Reda general manager George Schnieder predicted the sale will be viewed in a "very favorable light" by the company's 800 employees here and by the Bartlesville community.
Schneider and officials with TRW and Camco said they believed Reda Pump will match better with Camco's oil-field equipment manufacturing and supply operations, and that the sale will make the company's future more secure.
Tausch said Reda Pump and Oilwell will be an "excellent fit" with Camco's other businesses.
"Reda has proved to be one of the best and most resilient performers in the oil-service industry," Tausch said. "We should be able to improve margins and capitalize on our international experience."
Tausch spent the day in Bartlesville, meeting with Reda officials and with community leaders.
TRW officials said the sale was the latest in a series of steps to divest the $6.8-billion-a-year corporation of its energy-related enterprises and focus on its core high-technology businesses.
TRW chief executive Joseph T. Gorman said the sale will benefit both TRW and the new Camco divisions.
Gorman said the Cleveland-based firm had negotiated sale of another energy division, Mission Drilling Products of Houston, to the Swedish firm Sandvik. No additional details of that transaction were immediately available.
The Reda sale will be completed as soon as details are worked out, which is expected in several weeks, officials said.
Reda Pump manufactures submersible electric pumps used in oil-field and other applications.
Tausch predicted the pumps and other equipment marketed by Camco would find increasing use in mature U.S. oil fields where waterflood and other enhanced recovery techniques are used.
Founded in 1928, Reda Pump was acquired by TRW in 1969. It has about 1,400 employees worldwide, with operations in three states outside Oklahoma, Canada and a number of other countries.
Reda became the focal point of the TRW's energy group in 1987, when TRW moved the group's headquarters to Bartlesville and appointed Reda management as officers of the group.
Besides the Reda Pump manufacturing plant, the TRW energy group included Oilwell, based in Lawrence, Kan.; Mission Drilling; Brandt Solids Control, Conroe, Texas; and Coal Combustion of Los Angeles.
A Reda spokesman said on Tuesday that Camco officials have not indicated whether Reda will continue to direct Oilwell operations after the sale is completed.
Oilwell Cable, with about 85 employees, makes electric cable used to power submersible pumps, and recently entered the molded-rubber and polyurethane-casting businesses, officials said.
Reda Pump's Bartlesville work force stood at about 1,600 in 1985, making it the city's second-largest employer behind Phillips Petroleum Co. Layoffs reduced the work force to about 900 in March 1986 and to its current level later that year.
Pearson is a holding company with subsidiaries worldwide, officials said. BIOG: NAME:Archive ID: 361091