WASHINGTON (dpa-AFX) - Energy technology company Baker Hughes Co. (BKR) announced Monday an agreement to sell its Precision Sensors & Instrumentation or PSI product line to Crane Co. (CR) for a total cash consideration of around $1.15 billion.
Meanwhile, Crane, a diversified manufacturer of engineered industrial products, in its statement noted that the deal price is $1.06 billion after adjusting for expected tax benefits with an estimated net present value of around $90 million.
The deal is expected to close at the end of 2025 or early 2026, subject to customary conditions, including regulatory approvals.
PSI, part of Baker Hughes Industrial & Energy Technology segment, includes the Druck, Panametrics and Reuter-Stokes brands. They manufacture instrumentation and sensor-based technologies to detect and analyze pressure, flow, gas, moisture and radiation across various industries.
PSI, with around 1,600 workers, is expected to record 2025 sales of around $390 million, with adjusted EBITDA of approximately $60 million.
The sale encompasses all assets of the business, including intellectual property, footprint and resources.
Baker Hughes said the sale, along with the recently announced Surface Pressure Control deal, is aligned with its focus on value-creating portfolio management.
Further, Crane said it intends to finance the acquisition with a combination of cash on hand and additional debt.
Alex Alcala, Crane's Executive Vice President and Chief Operating Officer, stated, 'The PSI acquisition is an important next step in our multi-year, ongoing portfolio evolution. Since our April 2023 separation, we have continued to focus on highly-engineered products for mission-critical applications with a higher growth and higher gross margin profile. We have a proven track record of creating value through acquisitions, and we believe that the strong fit of PSI with our existing business, combined with our consistently differentiated execution, will drive attractive financial returns.'
Evercore is serving as financial adviser for Baker Hughes on the deal.
In the pre-market activity, Baker Hughes shares were trading at $38.29 on the Nasdaq, up 1.03%, while Crane shares were trading at $178.05 on the NYSE, up 0.26%.
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