Baker Hughes to acquire Continental Disc Corporation for $540M

Baker Hughes (BKR) has agreed to acquire Continental Disc Corporation from investment partnerships managed by Tinicum Incorporated in an all-cash transaction for approximately $540M. 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 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. 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, approximately 80% of CDC’s $109M in proforma revenue was recurring – a key driver of its strong returns and highly accretive margin profile. The CDC acquisition, along with the recently announced Surface Pressure Control transaction and sale of the Precision Sensors & Instrumentatio product line, advances Baker Hughes’ portfolio optimization strategy designed to drive more durable earnings and cash flow. These actions reflect the company’s disciplined approach to capital allocation, with a focus on core businesses that offer compelling return potential. The addition of CDC 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. The acquisition is expected to be immediately accretive to earnings and cash flow per share, as well as IET’s segment margins. The acquisition will be funded with cash on hand and is expected to close in the fourth quarter of 2025, subject to completion of all customary conditions and required regulatory approvals.