-- 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