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Baker Hughes said on Tuesday that it has formed a new land pressure pumping joint venture with a Goldman Sachs fund.

The Houston-based company agreed to create a pure-play 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.

Baker Hughes said the new company will “leverage operational experience and industry expertise to provide customers with leading hydraulic fracturing and cementing services supported by the current Baker Hughes world-class technology portfolio.”

Under the terms of the agreement, Baker Hughes will contribute its North American land cementing and hydraulic fracturing businesses, that comprises assets in the United States and Canada.

Those assets include personnel, expertise, technology and infrastructure, Baker Hughes said.

Upon closing, CSL Capital Management will contribute its Allied Energy Services platform, that provides hydraulic fracturing and cementing services on land in North America.

CSL Capital Management and WSEP will also together contribute $325 million in cash to the new company, with $175 million to be used to strengthen its balance sheet and position it for growth.

The remaining $150 million will go to Baker Hughes.

CSL Capital Management and WSEP together will own 53.3 percent of the new company and Baker Hughes will retain a 46.7 percent ownership stake.

The new company will operate under the BJ Services brand and will be headquartered in Tomball, Texas.

Baker Hughes said it will provide customary support services to ensure a seamless transition.

Access to Baker Hughes’ current pressure pumping technology will be provided to the new company through a licensing agreement.

Through a strategic collaboration, Baker Hughes will have access to BJ Services’ product and service portfolio to continue to provide solutions to customers in the North American land market.

“With a strong balance sheet and deep operational expertise, the new company will benefit from a sharp focus on pressure pumping to respond quickly to market dynamics and better serve customers. In line with our asset-light strategy, this ownership model enables Baker Hughes to participate in the North American land pressure pumping market, while reducing capital intensity and maximizing shareholder value,” Baker Hughes chairman and CEO Martin Craighead said.

The agreement is subject to customary regulatory approvals.

Baker Hughes said the companies are “committed to working constructively with regulatory authorities to obtain required approvals.”

Wells Fargo Securities is acting as exclusive financial advisor to Baker Hughes.