Smith International Inc. sold the 19-acre facility that once housed its Smith Tool operations in San Bernardino to Loma Linda University Medical Center for $5 million.
Smith's tool subsidiary, which manufactures drilling bits and other machinery used in oil exploration and drilling, has been especially hard hit by the prolonged, and continuing, drop in oil prices over the last several years.
The subsidiary has already cut its worldwide work force to 2,430 employees from a high of 3,620 four years ago and more layoffs are planned. The company is expected to begin a series of layoffs Feb. 14 aimed at reducing production by 20%.
Loma Linda University Medical Center is expected to convert the former Smith manufacturing plant into a warehouse to store equipment and medical records.
Collins Fuller Inc., an Irvine-based commercial real estate brokerage, represented both parties in the transaction from its Riverside branch office.