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BKR Expands Pressure Management Portfolio With $540M CDC Acquisition
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Key Takeaways
BKR is acquiring pressure management firm CDC for $540M in an all-cash deal announced on June 16, 2025.
CDC brings 80% recurring revenues and safety-critical products across key industrial sectors.
BKR expects immediate accretion to EPS, cash flow, and margins in its IET unit.
Baker Hughes Company (BKR - Free Report) ), a leading energy technology company, has announced the acquisition of Continental Disc Corporation (“CDC”), a Liberty, Missouri-based leader in pressure management solutions, for $540 million in an all-cash transaction. The move, disclosed on June 16, 2025, adds a high-margin, safety-critical product portfolio to Baker Hughes' Industrial & Energy Technology (“IET”) segment, advancing its broader strategy of portfolio optimization.
BKR Leverages CDC’s Recurring Revenue Base and Global Reach
CDC specializes in rupture discs, relief valves, flame arrestors, and other essential safety products used across sectors such as oil and gas, pharmaceuticals, chemicals, food and beverage, and aerospace. The acquisition brings a sizable installed base and strong recurring revenue profile — roughly 80% of its $109 million in 2024 revenues was recurring. This aligns well with Baker Hughes’ goal to deepen its aftermarket engagement and boost long-term earnings quality.
BKR Expects Immediate EPS, Cash Flow and Margin Accretion
Baker Hughes anticipates the deal to be immediately accretive to earnings per share, cash flow per share, and IET’s segment margins. The acquisition adds complementary capabilities to Baker Hughes’ existing valve technologies while supporting its disciplined capital allocation strategy focused on core businesses with strong return potential.
Part of Broader BKR Portfolio Optimization Push
The CDC transaction follows Baker Hughes' recent Surface Pressure Control acquisition and the divestiture of its Precision Sensors & Instrumentation product line, indicating a focused reshaping of the company’s business mix. CEO Lorenzo Simonelli emphasized the strategic fit of CDC, stating the deal enhances the industrial portfolio while creating long-term shareholder value.
Deal Expected to Close in Q4 2025
The transaction, funded entirely with cash on hand, is expected to be closed in the fourth quarter of 2025, pending regulatory approvals. Jefferies and King & Spalding are advising Baker Hughes on the deal, while William Blair, Baird, and Morrison Foerster are advising CDC and its seller, Tinicum Incorporated.
This acquisition strengthens Baker Hughes’ drive to solidify its position as a leader in industrial process safety and pressure control, which are key pillars in the evolving landscape of energy and industrial technology.
BKR’s Zacks Rank & Key Picks
Currently, Baker Hughes carries a Zacks Rank #3 (Hold).
Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.
The Zacks Consensus Estimate for OII’s 2025 EPS is pegged at $1.79. The company has a Value Score of B.
RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks in the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans to further expand high-efficiency equipment to enhance operational capabilities.
The Zacks Consensus Estimate for RES’ 2025 EPS is pegged at 38 cents. The company has a Value Score of A.
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BKR Expands Pressure Management Portfolio With $540M CDC Acquisition
Key Takeaways
Baker Hughes Company (BKR - Free Report) ), a leading energy technology company, has announced the acquisition of Continental Disc Corporation (“CDC”), a Liberty, Missouri-based leader in pressure management solutions, for $540 million in an all-cash transaction. The move, disclosed on June 16, 2025, adds a high-margin, safety-critical product portfolio to Baker Hughes' Industrial & Energy Technology (“IET”) segment, advancing its broader strategy of portfolio optimization.
BKR Leverages CDC’s Recurring Revenue Base and Global Reach
CDC specializes in rupture discs, relief valves, flame arrestors, and other essential safety products used across sectors such as oil and gas, pharmaceuticals, chemicals, food and beverage, and aerospace. The acquisition brings a sizable installed base and strong recurring revenue profile — roughly 80% of its $109 million in 2024 revenues was recurring. This aligns well with Baker Hughes’ goal to deepen its aftermarket engagement and boost long-term earnings quality.
BKR Expects Immediate EPS, Cash Flow and Margin Accretion
Baker Hughes anticipates the deal to be immediately accretive to earnings per share, cash flow per share, and IET’s segment margins. The acquisition adds complementary capabilities to Baker Hughes’ existing valve technologies while supporting its disciplined capital allocation strategy focused on core businesses with strong return potential.
Part of Broader BKR Portfolio Optimization Push
The CDC transaction follows Baker Hughes' recent Surface Pressure Control acquisition and the divestiture of its Precision Sensors & Instrumentation product line, indicating a focused reshaping of the company’s business mix. CEO Lorenzo Simonelli emphasized the strategic fit of CDC, stating the deal enhances the industrial portfolio while creating long-term shareholder value.
Deal Expected to Close in Q4 2025
The transaction, funded entirely with cash on hand, is expected to be closed in the fourth quarter of 2025, pending regulatory approvals. Jefferies and King & Spalding are advising Baker Hughes on the deal, while William Blair, Baird, and Morrison Foerster are advising CDC and its seller, Tinicum Incorporated.
This acquisition strengthens Baker Hughes’ drive to solidify its position as a leader in industrial process safety and pressure control, which are key pillars in the evolving landscape of energy and industrial technology.
BKR’s Zacks Rank & Key Picks
Currently, Baker Hughes carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Subsea 7 S.A. (SUBCY - Free Report) , Oceaneering International, Inc. (OII - Free Report) and RPC Inc. (RES - Free Report) . Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while Oceaneering Internationaland RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.
The Zacks Consensus Estimate for OII’s 2025 EPS is pegged at $1.79. The company has a Value Score of B.
RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks in the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans to further expand high-efficiency equipment to enhance operational capabilities.
The Zacks Consensus Estimate for RES’ 2025 EPS is pegged at 38 cents. The company has a Value Score of A.