PR83887

NEW YORK, May 1, 2020 /PRNewswire=KYODO JBN/--

-- Industry-Leading Brand in Global Rod Lift Solutions to Become Independent

Company

KPS Capital Partners, LP ("KPS") announced today that it has signed a

definitive agreement to acquire the Lufkin rod lift solutions business

("Lufkin" or the "Company") from Baker Hughes (NYSE: BKR).

Lufkin was founded in 1902 and acquired in 2013 by General Electric's Oil & Gas

division. The division subsequently merged with Baker Hughes, Inc. in 2017.

Lufkin, headquartered in Missouri City, Texas, is a leading 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. With over 100 years of industry leadership, Lufkin

manufactures a complete line of surface pumping units, downhole sucker rod

pumps and automation systems in six manufacturing and assembly facilities

worldwide. Lufkin has an extensive global service footprint that operates in

every critical rod lift market in the world.

Upon close, the transaction 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 with KPS.

Michael Psaros, Co-Founder and Co-Managing Partner of KPS, said, "We are

excited to create an independent Lufkin. 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. 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 is an ideal partner with a demonstrated decades-long track record of

creating and building industry-leading companies. 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."

Completion of the transaction is expected mid-year 2020 and is subject to

customary closing conditions and approvals.

Simmons Energy, a division of Piper Sandler & Co., acted as advisor and Paul,

Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to KPS and its

affiliates. Citi and Tudor, Pickering, Holt & Co. acted as financial advisors

and King & Spalding International LLP served as legal counsel to Baker Hughes.

About Lufkin

Lufkin, headquartered in Missouri City, Texas, is a leading 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. With over 100 years of industry leadership, Lufkin

manufactures a complete line of surface pumping units, downhole sucker rod

pumps and automation systems in six manufacturing and assembly facilities

worldwide. Lufkin has an extensive global service footprint that operates in

every critical rod lift market in the world. For more information on Lufkin,

visit

www.bhge.com/upstream/production-optimization/artificial-lift/rod-lift-systems.

About KPS Capital Partners

KPS, through its affiliated management entities, is the manager of the KPS

Special Situations Funds, a family of investment funds with approximately $11.7

billion of assets under management (as of December 31, 2019). For over two

decades, the Partners of KPS have worked exclusively to realize significant

capital appreciation by making controlling equity investments in manufacturing

and industrial companies across a diverse array of industries, including basic

materials, branded consumer, healthcare and luxury products, automotive parts,

capital equipment and general manufacturing. KPS creates value for its

investors by working constructively with talented management teams to make

businesses better, and generates investment returns by structurally improving

the strategic position, competitiveness and profitability of its portfolio

companies, rather than primarily relying on financial leverage. The KPS Funds'

portfolio companies have aggregate annual revenues of approximately $8.4

billion, operate 143 manufacturing facilities in 26 countries, and have

approximately 28,000 employees, directly and through joint ventures worldwide

(as of December 31, 2019). The KPS investment strategy and portfolio companies

are described in detail at www.kpsfund.com.

SOURCE: KPS Capital Partners, LP

CONTACT: Business Inquiries:

KPS, +1-212-338-5100;

Media Relations:

Mark Semer or Daniel Yunger

+1-212-521-4800