Expands Global Platform in Rod Lift Solutions
MISSOURI CITY, Texas,
Nov. 2, 2020 /PRNewswire/
-- Lufkin Industries ("Lufkin"), a portfolio company of KPS Capital
Partners, LP ("KPS"), announced today that it has completed the
acquisition of the North American Land Rod Lift Business (the "Rod
Lift Business" or the "Business") of Schlumberger N.V.
("Schlumberger") (NYSE: SLB).
Schlumberger's Rod Lift Business is a large provider of rod lift
products and services in North
America (onshore) with brands including Don-Nan, Shores Lift
Solutions, KBA Engineering, Platinum Pumpjack Services and RLC Rod
Lift Consulting. The Business provides its customers with a
full product offering including downhole pumps and accessories,
beam pumping units, sucker rods and gas lift products. The
Rod Lift Business has significant manufacturing and distribution
capacity and has developed differentiated technology offerings,
including the proprietary PumpTrak software. The Business has
an expansive footprint across all major oil-producing regions in
North America (onshore), including
the Permian Basin where Don-Nan has operated for almost 60
years.
Lufkin became an independent
company after being acquired by KPS from Baker Hughes on
June 30, 2020. 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 throughout the
oil-producing world.
Michael Psaros, Co-Founder and
Co-Managing Partner of KPS, said, "We are excited to combine
Lufkin and Schlumberger's Rod Lift
Business, which together have an unparalleled reputation for
reliability, superior technology, innovation, customer service and
global footprint. KPS Partner Ryan Baker, leveraging KPS'
significant capital resources and global platform, is successfully
leading a team that is building Lufkin through the acquisition of
complementary businesses, technologies and products that serve the
upstream sector of the energy business. KPS is committed to
expanding the Lufkin platform
despite unprecedented volatility in the energy business, which will
benefit customers of Lufkin and
Schlumberger's Rod Lift Business."
Andy Cordova, President of
Lufkin, said, "The real winner in
the combination are the customers of Lufkin and Schlumberger's Rod Lift
Business. Our customers will now have access to the many
strengths of both businesses as we combine the very best
technology, manufacturing processes and global footprint. We
will remain laser focused on providing world-class quality,
delivery and customer service across our platform as we combine
these businesses and beyond."
Simmons Energy, a division of Piper
Sandler & Co., acted as advisor and Paul, Weiss,
Rifkind, Wharton & Garrison LLP and Dentons served as legal
counsel to Lufkin and its
affiliates. PPHB LP acted as advisor and Akin Gump Strauss
Hauer & Feld LLP served as legal counsel to Schlumberger.
About Schlumberger Rod Lift Business
Schlumberger's
Rod Lift Business is a large provider of rod lift products and
services in North America
(onshore) with brands including Don-Nan, Shores Lift Solutions, KBA
Engineering, Platinum Pumpjack Services and RLC Rod Lift
Consulting. The Business provides its customers with a full
product offering including downhole pumps and accessories, beam
pumping units, sucker rods and gas lift products. The Rod
Lift Business has significant manufacturing and distribution
capacity and has developed differentiated technology offerings,
including the proprietary PumpTrak software. The Business has
an expansive footprint across all major oil-producing regions in
North America (onshore), including
the Permian Basin where Don-Nan has operated for almost 60
years. For more information on Schlumberger's Rod Lift
Business, visit www.don-nan.com or
www.slb.com/completions/artificial-lift/sucker-rod-pumps.
About Lufkin Industries
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 throughout the oil-producing
world. For more information on Lufkin, visit www.lufkin.com.
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 $11.5 billion of assets under management (as of
June 30, 2020). 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 currently have aggregate annual revenues of approximately
$10.6 billion, operate 168
manufacturing facilities in 27 countries, and have nearly 32,000
employees, directly and through joint ventures worldwide (as of
June 30, 2020, pro forma for recent
acquisitions). The KPS investment strategy and portfolio
companies are described in detail at www.kpsfund.com.