WASHINGTON (dpa-AFX) - Baker Hughes Co. (BKR), an energy technology company, announced Monday that it has agreed to acquire Continental Disc Corp., a provider of safety-critical pressure management solutions, in an all-cash deal for around $540 million.
The acquisition, from investment partnerships managed by Tinicum Inc., is expected to be immediately accretive to earnings and cash flow per share and Industrial & Energy Technology or IETs segment margins.
The deal is expected to close in the fourth quarter of 2025, subject to completion of all customary conditions and required regulatory approvals. Baker Hughes expects to fund the acquisition with cash on hand.
Liberty, Missouri -based 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.
CDC's rupture disc and pressure/vacuum relief valve portfolio takes a major role in addressing pressure/vacuum safety and pressure management for critical applications.
Baker Hughes said these products are highly complementary to its IET segment's existing Control Valve and High-Pressure Relief Valve offerings. They are deployed across various industries, including applications across pharmaceutical, chemical, food and beverage, oil and gas, and aerospace markets.
CDC generates significant recurring revenue. In 2024, around 80% of CDC's $109 million in proforma revenue was recurring.
Baker Hughes noted that the CDC acquisition, along with the recently announced Surface Pressure Control transaction and sale of the Precision Sensors & Instrumentation product line, advances its portfolio optimization strategy designed to drive more durable earnings and cash flow.
In the deal, Jefferies is serving as financial adviser for Baker Hughes and William Blair & Company and Baird are serving as financial advisers to the board of Continental Disc.
In the pre-market activity on the Nasdaq, Baker Hughes shares were losing around 1.4 percent to trade at $38.51.
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