Baker Hughes To Sell Lufkin Rod Lift Unit To KPS Capital
Baker Hughes (NYSE: BKR) announced Friday that it has agreed to sell its Lufkin rod lift business to private equity fund manager KPS Capital Partners, LP for an undisclosed sum.
Reuters reports the unit would likely be valued in the $200-million range.
Lufkin rod provides technologies, equipment and software for rod lift equipment to the oil and gas industry.
Once the transaction is closed, the company will transfer assets of the Lufkin rod lift business to an affiliate of KPS, including brand rights, facilities, intellectual property and personnel.
Lufkin's power transmission business will remain part of the Baker Hughes portfolio and is not included in the transaction. The deal is expected to be completed midyear.
"KPS will build a successful energy platform on the foundation of Lufkin's legendary brand name, unparalleled reputation for reliability, superior technology and global footprint,” Michael Psaros, co-founder of KPS, said in a statement.
“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,."
Baker Hughes shares were trading down 1.08% at $13.80 at the time of publication Friday. The stock has a 52-week high of $25.99 and a 52-week low of $9.12.
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