Baker Hughes Sells PSI Product Line to Crane in Billion Dollar Deal

In a release posted on its website on Monday, Baker Hughes announced an agreement to sell its Precision Sensors & Instrumentation (PSI) product line to Crane Company “for a total cash consideration of approximately $1.15 billion”.

The closing of the transaction is subject to customary conditions, including regulatory approvals, the release noted, adding that the deal is expected to close at the end of 2025 or early 2026. Evercore is serving as financial adviser for Baker Hughes on this transaction, Baker Hughes revealed in the release .

PSI is part of Baker Hughes’ Industrial & Energy Technology (IET) segment and includes the Druck, Panametrics, and Reuter-Stokes brands, Baker Hughes highlighted in the release, noting that these brands manufacture instrumentation and sensor-based technologies to detect and analyze pressure, flow, gas, moisture, and radiation across various industries.

PSI employs approximately 1,600 people across several manufacturing and service facilities globally, the release stated, adding that the sale encompasses all assets of the business, including intellectual property, footprint, and resources.

Baker Hughes said in the release that this divestiture, along with the recently announced Surface Pressure Control transaction, is aligned with its focus on value-creating portfolio management that enhances the durability of earnings and cash flow and enables the company to reallocate capital toward higher-return opportunities using a strategic and disciplined approach to capital deployment.

“This transaction continues the progress we have made in enhancing our strategic focus on IET’s core competencies of rotating equipment, asset performance management, flow control, and decarbonization to continue to drive higher returns, reinforcing our commitment to long-term value for our shareholders,” Baker Hughes Chairman and CEO Lorenzo Simonelli said in the release.

“We believe the value realized in this transaction is a testimony to these product lines’ quality and the potential they can achieve as part of Crane,” he added.

In a release posted on its site earlier this month, Baker Hughes announced an agreement to form a new joint venture with a subsidiary of Cactus Inc, “in which Baker Hughes will contribute its surface pressure control (SPC) product line”. Cactus will assume operational control, owning 65 percent of the joint venture, while Baker Hughes will retain a 35 percent stake, Baker Hughes noted at the time. The closing of this transaction is subject to customary conditions, including regulatory approvals, Baker Hughes highlighted in that release, revealing that it is expected to close in the second half of this year.

In a release posted on its site on Monday, Crane Company said it has signed an agreement to acquire PSI “for $1,060 million after adjusting for expected tax benefits with an estimated net present value of approximately $90 million”.

Crane said in that release that it intends to finance the acquisition with a combination of cash on hand and additional debt. It also noted that PSI is expected to have 2025 sales of approximately $390 million, with adjusted EBITDA of approximately $60 million.

“PSI is a unique asset with three iconic brands that are highly complementary to both of our segments,” Max H. Mitchell, Chairman of the Board, President, and Chief Executive Officer of Crane Company, said in the release.

“The bottom line is that PSI is a global leader in highly sophisticated sensor-based technologies for mission critical applications in harsh and hazardous environments,” he added.

“These businesses are a perfect fit with Crane’s existing portfolio, enhancing our product portfolio and technology capabilities in key target markets including aerospace & defense, nuclear, industrial process sensing, and water and wastewater,” he continued.

“Consistent with our unwavering focus on driving shareholder value, this transaction meets all of Crane Company’s strategic and financial criteria, including a 10 percent ROIC by year five. We expect PSI to deliver long-term sales growth consistent with Crane’s current profile in the four percent to six percent range, with operating profit leveraging at approximately 35 percent,” he said.

“In addition, over the next several years, we expect margin expansion from deployment of the Crane Business System, driving both commercial and operational excellence initiatives, and building on the already strong execution and leadership in their respective markets,” Mitchell went on to state.

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