Baker Hughes Inc. has agreed to sell its Lufkin rod lift solutions business to KPS Capital Partners. At closing-- expected mid-year 2020--assets of the Lufkin rod lift business will transfer to an affiliate of KPS, including personnel. Lufkin’s power transmission business will remain part of the Baker Hughes portfolio
Additional terms of the sale were not disclosed.
Lufkin was founded in 1902 and acquired in 2013 by General Electric’s Oil & Gas division. The division later merged with Baker Hughes in 2017. Headquartered in Missouri City, Texas, Lufkin is a global provider of rod lift products, technologies, services and solutions, including automated control and optimization equipment and software for rod lift equipment to the oil and gas industry. The business manufactures surface pumping units, downhole sucker rod pumps and automation systems in six manufacturing and assembly facilities worldwide.
“We are excited to create an independent Lufkin,” Michael Psaros, Co-Founder and Co-Managing Partner of KPS, said in a written statement. “The historic dislocation in current global and domestic energy markets has created an extraordinary investment opportunity for an investor like KPS. KPS Partner Ryan Baker will lead a team to acquire complementary technologies and products that serve the upstream sector of the energy industry in partnership with Lufkin’s management team. Lufkin will benefit from being a debt-free business with access to the very significant financial resources of KPS.”
Andy Cordova, the rod lift solutions general manager for Baker Hughes, said, “We are confident in our future as an independent company under KPS’ ownership. KPS’ global platform, commitment to manufacturing excellence and significant financial resources will enable Lufkin to accelerate its growth and invest in technology and process improvements for our customers, while enhancing our established reputation for industry-leading technology, quality and customer service.”
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with over $11.7 billion of assets under management. The KPS Funds’ portfolio companies have aggregate annual revenues of about $8.4 billion, operate 143 manufacturing facilities in 26 countries, and have approximately 28,000 employees, directly and through joint ventures worldwide.
To contact the author, email bertie.taylor@rigzone.com.
No comments:
Post a Comment