Baker Hughes Acquires Continental Disc Corporation in $540 Million Deal
Baker Hughes, an energy technology company listed on NASDAQ as BKR, has announced its agreement to acquire Continental Disc Corporation (CDC), a leading provider of safety-critical pressure management solutions, from investment partnerships managed by Tinicum Incorporated. The all-cash transaction is valued at approximately $540 million.
Headquartered in Liberty, Missouri, CDC specializes in designing and manufacturing rupture discs, rupture disc holders, burst disc indicators, pressure- and vacuum-relief valves, flame and detonation arrestors, and related safety products. These products complement Baker Hughes’ existing Control Valve and High-Pressure Relief Valve offerings within its Industrial & Energy Technology (IET) segment, serving various industries including pharmaceutical, chemical, food and beverage, oil and gas, and aerospace markets.
The acquisition is expected to be immediately accretive to earnings and cash flow per share, as well as IET’s segment margins. CDC’s significant recurring revenue, with approximately 80% of its $109 million proforma revenue in 2024 being recurring, is a key driver of its strong returns and highly accretive margin profile.
This move aligns with Baker Hughes’ portfolio optimization strategy aimed at driving more durable earnings and cash flow. The acquisition demonstrates the company’s disciplined approach to capital allocation, focusing on core businesses with compelling return potential.
“We are excited to enhance our industrial portfolio and expand our addressable market with the addition of CDC’s well-established critical pressure management solutions,” said Baker Hughes Chairman and CEO Lorenzo Simonelli. “Together with the recently announced Surface Pressure Control (SPC) and Precision Sensors & Instrumentation (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.”
Michael Donner, Partner of Tinicum, added, “While we will miss working with the extraordinarily dedicated CDC team, we are thrilled to see the business and CDC’s employees join Baker Hughes, a leader in the global process control and energy technology industries.”
The acquisition will be funded using cash on hand and is expected to close in the fourth quarter of 2025, subject to customary conditions and regulatory approvals.
