Baker Hughes to Acquire Continental Disc Corporation for $540 Million
Deal News | Jun 16, 2025 | Globenewswire
Baker Hughes, an energy technology firm, has announced its agreement to acquire Continental Disc Corporation (CDC), a leader in safety-critical pressure management, in an all-cash transaction valued at approximately $540 million. The acquisition is part of Baker Hughes' broader strategy to optimize its portfolio by focusing on core businesses with promising returns. CDC, headquartered in Liberty, Missouri, designs and manufactures products critical to pressure safety and management across various industries such as pharmaceuticals, chemicals, food and beverage, oil and gas, and aerospace. With an 80% recurring revenue stream, CDC's financial performance is robust, making it a strategic fit for Baker Hughes' goals of enhancing earnings and cash flow. The deal will be funded with cash on hand, and the integration is expected to immediately benefit earnings per share and segment margins for Baker Hughes' Industrial & Energy Technologies (IET) division. The acquisition aligns with recent transactions targeting higher-value portfolio additions and divestments. Advisory on the transaction was provided by Jefferies and King & Spalding for Baker Hughes, and William Blair & Company, Baird, and Morrison Foerster for CDC. The transaction completion is anticipated in the fourth quarter of 2025, following customary conditions and regulatory approvals.
Sectors
- Energy Technology
- Manufacturing and Distribution
- Industrial Technology
- Private Equity and Investment
Geography
- United States – The transaction involves companies headquartered in the U.S., namely Baker Hughes in Houston and CDC in Liberty, Missouri.
- United Kingdom – Baker Hughes, despite being headquartered in the U.S., conducts business globally with significant operations and influence in markets outside the U.S.
Industry
- Energy Technology – Baker Hughes is an energy technology company, indicating the core industry involved in the acquisition.
- Manufacturing and Distribution – Continental Disc Corporation manufactures pressure management solutions, the focal industry of their operations.
- Industrial Technology – The acquisition involves industrial technology solutions for sectors like pharmaceuticals and oil and gas.
- Private Equity and Investment – Tinicum Incorporated is a private partnership managing investment in Continental Disc Corporation.
Financials
- $540 million – The purchase price for acquiring Continental Disc Corporation in an all-cash transaction.
- $109 million – The proforma revenue for CDC in 2024, with around 80% being recurring.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Baker Hughes | Acquirer | Company | An energy technology company acquiring Continental Disc Corporation. |
| Continental Disc Corporation | Target | Company | A leader in safety-critical pressure management solutions, being acquired by Baker Hughes. |
| Tinicum Incorporated | Selling Company | Company | The investment firm managing the sale of Continental Disc Corporation. |
| Jefferies | Financial Adviser for Baker Hughes | Company | Provided financial advisory services to Baker Hughes for this transaction. |
| King and Spalding | Legal Adviser for Baker Hughes | Company | Provided legal advisory services to Baker Hughes for this transaction. |
| William Blair & Company | Financial Adviser for CDC | Company | Provided financial advisory services to Continental Disc Corporation's board. |
| Baird | Financial Adviser for CDC | Company | Provided financial advisory services to Continental Disc Corporation's board. |
| Morrison Foerster | Legal Adviser for CDC | Company | Provided legal advisory services to Continental Disc Corporation's board. |