Cactus Companies (NYSE:WHD), a subsidiary of Cactus, announced plans to purchase a 65% controlling interest in Baker Hughes’ (NASDAQ:BKR) Surface Pressure Control (SPC) business. The transaction, valued at $344.5 million, will result in Baker Hughes retaining a 35% ownership stake in the SPC unit after closing.
The overall enterprise value of the deal is approximately $530 million on a cash-free, debt-free basis. Once completed, Cactus will assume majority control of the SPC business, with Baker Hughes maintaining a significant minority position.
An option is in place for Cactus to acquire the remaining 35% stake two years post-closing, a purchase which Baker Hughes may also require Cactus to execute.
To fund the acquisition, Cactus intends to use its available cash reserves and a $225 million revolving credit facility. The transaction is expected to close during the second half of 2025.