Baker Hughes announced the final closing of its joint venture with a subsidiary of Cactus Inc., transferring its surface pressure control (SPC) business in exchange for a minority stake and a cash payment of $344.5 million before customary adjustments. The deal allows the American group to reinforce its financial structure while pursuing a strategy of refocusing on higher-margin segments.
Cactus now holds 65% of the new entity resulting from the agreement, while Baker Hughes retains a 35% stake. This partnership reflects a disciplined approach to portfolio management, with a strong focus on capital allocation and operational execution. The transaction also aims to enhance the resilience of cash flows while delivering long-term value to shareholders.
Capital redeployment and industrial strategy
Through this transaction, Baker Hughes plans to redirect capital toward higher-return segments while optimising its legacy operations. The company aims for greater efficiency in resource use while maintaining market access through its minority position in the joint venture. The partial divestiture also helps reduce operational costs in a segment where margins are traditionally under pressure.
Cactus, a global provider of pressure control equipment for oil drilling and production, strengthens its position in a fragmented market. The integration of Baker Hughes’ SPC line complements its existing portfolio, with increased industrial reach on an international scale.
Strengthening Baker Hughes’ financial position
The proceeds from the transaction enable Baker Hughes to solidify its cash position amid energy market volatility. This move is part of a broader strategy to increase the group’s financial flexibility while maintaining tight control over investments.
The amount received, before customary adjustments, supports a strict policy of capital reallocation towards technologies or geographic areas deemed a priority. No further details were provided regarding specific reinvestment targets.
