Varco International, an Orange-based oil drilling equipment...

Varco International, an Orange-based oil drilling equipment manufacturer, said it has completed a previously reported agreement to purchase two units of Baker Hughes International for $23 million in stock, options and notes. Varco also agreed to pay Houston-based Baker Hughes up to $15 million in royalties over an eight-year period. The units acquired are BJ Machinery, which makes drilling equipment, and Technical Drilling Tool, a marketing and sales arm of Hughes Tool Co., a subsidiary of Baker Hughes. Both operations are based in Houston, although BJ Machinery’s manufacturing facilities are in Holland.