BATON ROUGE, LOUISIANA (Steve Stewart, Energy Analytics Institute, 16.Jun.2025, Words: 425) — Baker Hughes agreed to acquire Continental Disc Corporation (CDC) from investment partnerships managed by Tinicum Incorporated in a $540mn all-cash transaction.
The acquisition will be funded with cash on hand and is expected to close in the fourth-quarter 2025 (4Q:25), subject to completion of all customary conditions and required regulatory approvals, according to Baker Hughes.
The CDC addition 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, Baker Hughes announced on 16 Jun. 2025 in an official statement. The acquisition is expected to be immediately accretive to earnings and cash flow per share, as well as IET’s segment margins, according to Baker Hughes.
Jefferies is serving as financial adviser and King and Spalding is serving as legal adviser for Baker Hughes on this transaction. William Blair & Company and Baird are serving as financial advisers and Morrison Foerster is serving as legal adviser to the board of CDC.
With a large global installed base and essential products that require regular replacement to maintain safety and operational reliability, CDC generates significant recurring revenue. In 2024, 80% of CDC’s $109mn in pro forma revenue was recurring – a key driver of its strong returns and highly accretive margin profile, according to Baker Hughes.
The CDC acquisition, along with the recently announced surface pressure control (SPC) transaction and sale of the precision sensors & instrumentation (PSI) product line, advances Baker Hughes’ portfolio optimization strategy designed to drive more durable earnings and cash flow. These actions reflect Baker Hughes’ disciplined approach to capital allocation, with a focus on core businesses that offer compelling return potential, the company said.
Headquartered in Liberty, Missouri, 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. These products, which are highly complementary to Baker Hughes industrial & energy technology’s (IET) existing control valve and high-pressure relief valve offerings, are deployed across a broad range of industries, including applications across pharmaceutical, chemical, food and beverage, oil and gas, and aerospace markets.
“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,” Baker Hughes chairman and CEO Lorenzo Simonelli said in the statement.
____________________
By Steve Stewart reporting from Baton Rouge. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
