Baker Hughes, an energy technology company, has agreed to acquire Continental Disc Corp. (CDC), a leading provider of safety-critical pressure management solutions, from investment partnerships managed by Tinicum Incorporated in an all-cash transaction for approximately US$540 million.
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 (IET) 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 US$109 million 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 (SPC) transaction and sale of the Precision Sensors & Instrumentation (PSI) product line, advances Baker Hughes’ portfolio optimisation 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.
“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 SPC and PSI transactions, this acquisition sets the blueprint for our portfolio optimisation strategy – focused on driving higher returns and creating long-term value for our shareholders.”
“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. We are confident that Baker Hughes will bring exciting new growth opportunities to the business and its team, given Baker Hughes’ highly complementary product lines and global reach,” added Michael Donner, Partner of Tinicum.
The acquisition will be funded with cash on hand and is expected to close in the 4Q25, subject to completion of all customary conditions and required regulatory approvals.
Jefferies is serving as financial adviser and King and Spalding is serving as legal adviser for Baker Hughes on this transaction. William Blair & Company and Baird are serving as financial advisers and Morrison Foerster is serving as legal adviser to the board of Continental Disc Corporation.
