Baker Hughes has agreed to buy Continental Disc Corp. (CDC) for around $540 million in cash as part of its portfolio optimization strategy.
Liberty, Missouri-based CDC, owned by Tinicum Inc., designs and produces rupture discs, rupture disc holders, burst disc indicators, pressure- and vacuum-relief valves, flame and detonation arrestors, and related safety products. These are used in applications across oil and gas, pharmaceuticals, chemicals, food and beverage, and aerospace.
These products “are highly complementary to Baker Hughes Industrial & Energy Technology’s (IET) existing Control Valve and High-Pressure Relief Valve offerings”, Baker Hughes said in a press release.
“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 added. “In 2024, approximately 80 percent of CDC’s $109 million in proforma revenue was recurring – a key driver of its strong returns and highly accretive margin profile”.
“The addition of CDC aligns with Baker Hughes’ acquisition criteria: a strong strategic fit with growth and synergy opportunities, accretive margins and returns, and a lifecycle business model that supports long-term aftermarket demand and strengthens earnings quality”, it said.
Baker Hughes said it would fund the purchase with cash on hand. The parties expect to close the transaction in the fourth quarter subject to regulatory approvals and other customary conditions.
“Together with the recently announced SPC and PSI transactions, this acquisition sets the blueprint for our portfolio optimization strategy – focused on driving higher returns and creating long-term value for our shareholders”, commented Baker Hughes chair and chief executive Lorenzo Simonelli.
Earlier this month Baker Hughes announced a deal with Cactus Inc. to create a joint venture consisting of Baker Hughes’ surface pressure control business.
Cactus will have operational control with a 65 percent stake. Baker Hughes will retain 35 percent. “The joint venture will operate independently from Cactus’ existing Pressure Control business and will focus on maintaining its leadership position in the international market for surface wellhead and production tree systems”, Baker Hughes said June 2.
The parties expect to conclude the transaction in the second half of 2025.
On June 9 Baker Hughes said it had signed a deal to sell its Precision Sensors & Instrumentation (PSI) product line to Crane Co. for approximately $1.15 billion.
The PSI line, part of Baker Hughes’ IET segment, makes instrumentation and sensor-based technologies to detect and analyze pressure, flow, gas, moisture and radiation across various industries.
“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”, Simonelli said.
The divestment is expected to be completed late 2025 or early 2026.
To contact the author, email jov.onsat@rigzone.com
What do you think? We’d love to hear from you, join the conversation on the
Rigzone Energy Network.
The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.
element
var scriptTag = document.createElement(‘script’);
scriptTag.src = url;
scriptTag.async = true;
scriptTag.onload = implementationCode;
scriptTag.onreadystatechange = implementationCode;
location.appendChild(scriptTag);
};
var div = document.getElementById(‘rigzonelogo’);
div.innerHTML += ” +
‘
‘ +
”;
var initJobSearch = function () {
//console.log(“call back”);
}
var addMetaPixel = function () {
if (-1 > -1 || -1 > -1) {
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
} else if (0 > -1 && 82 > -1)
{
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
}
}
// function gtmFunctionForLayout()
// {
//loadJS(“https://www.googletagmanager.com/gtag/js?id=G-K6ZDLWV6VX”, initJobSearch, document.body);
//}
// window.onload = (e => {
// setTimeout(
// function () {
// document.addEventListener(“DOMContentLoaded”, function () {
// // Select all anchor elements with class ‘ui-tabs-anchor’
// const anchors = document.querySelectorAll(‘a .ui-tabs-anchor’);
// // Loop through each anchor and remove the role attribute if it is set to “presentation”
// anchors.forEach(anchor => {
// if (anchor.getAttribute(‘role’) === ‘presentation’) {
// anchor.removeAttribute(‘role’);
// }
// });
// });
// }
// , 200);
//});
