Energy tech specialist, Baker Hughes Company, has completed the acquisition of Continental Disc Corporation (CDC) from investment partnerships managed by Tinicum Incorporated. In a media release, Baker Hughes said the acquisition had a price tag of $540 million.
The transaction brings a complementary portfolio of products to Baker Hughes’ existing valves product line, expanding the company’s addressable market in the flow control market with the addition of CDC’s well-established critical pressure management solutions, Baker Hughes said. The company expects that the purchase will immediately boost earnings, cash flow per share, and segment margins for Industrial & Energy Technology.
Baker Hughes unveiled the acquisition in June, noting that the Liberty, Missouri-headquartered CDC designs and manufactures rupture discs, rupture disc holders, burst disc indicators, pressure- and vacuum-relief valves, flame and detonation arrestors, and related safety products. These items, which complement Baker Hughes Industrial & Energy Technology’s (IET) current Control Valve and High-Pressure Relief Valve products, are utilized across various industries, including uses in pharmaceutical, chemical, food and beverage, oil and gas, and aerospace sectors, Baker Hughes said.
With a large global installed base and essential products that require regular replacement to maintain safety and operational reliability, CDC generates significant recurring revenue, Baker Hughes stated in June. In 2024, around 80 percent of CDC’s $109 million pro forma revenue was recurring, which is a key factor behind its strong returns and highly profitable margin profile, Baker Hughes added.
The CDC acquisition, together with the recently announced Surface Pressure Control (SPC) deal and the sale of the Precision Sensors & Instrumentation (PSI) product line, aligns with Baker Hughes’ strategy of portfolio optimization aimed at achieving more stable earnings and cash flow. Adding CDC fits Baker Hughes’ acquisition criteria: strong strategic alignment with growth and synergy prospects, profitable margins and returns, and a business model that supports long-term aftermarket demand and improves earnings quality, the company said.
The acquisition was funded with cash on hand, according to Baker Hughes.
To contact the author, email andreson.n.paul@gmail.com
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