May 1 (Reuters) - Oilfield services provider Baker Hughes Co on Friday agreed to sell its Lufkin rod lift unit to private equity fund manager KPS Capital Partners for an undisclosed amount.
Oilfield service providers, already grappling with slowing spending from producers, are further hard pressed as a recent plunge in oil prices has forced their customers to cut budgets drastically.
Reuters had reported earlier this year that Baker Hughes had retained advisers to sell the rod lifting business and a few others, and that the unit would likely be valued in the $200 million range.
Lufkin provides so-called rod lift gear that help in boosting output from oil and gas wells.
The deal, expected to close mid-year, includes Lufkin's brand rights, facilities, intellectual property and personnel which will be converted into an independent company. The unit's power transmission business is not included in the deal and will remain part of the Baker Hughes portfolio. (Reporting by Shariq Khan in Bengaluru; Editing by Shinjini Ganguli)