Baker Hughes, Cactus form joint venture

Baker Hughes will transfer operational control of its surface pressure control (SPC) product line to Cactus, Inc. under a new joint venture agreement that gives Cactus a 65% stake in the SPC-focused venture, with Baker Hughes retaining a 35% minority interest.

The agreement marks a strategic shift for both companies. Baker Hughes is refining its portfolio to focus on higher-margin growth segments, while Cactus gains a stronger foothold in international markets through the SPC line, which includes surface wellhead and production tree systems. The joint venture will operate independently from Cactus’ existing pressure control business.

A conventional wellhead system from Baker Hughes. The company transfer operational control of its surface pressure control (SPC) product line to Cactus, Inc. under a new joint venture agreement. (Image: Baker Hughes)

“This transaction marks an important step in our ongoing portfolio optimization strategy, enabling us to sharpen our focus on core growth areas while continuing to drive higher returns,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “We believe this joint venture only enhances delivery of innovation and reliability in well control, as the combined business will leverage Cactus’ unconventional expertise and agility into international markets.”

Houston-based Cactus manufactures and services pressure control equipment used in oil and gas drilling, completions, and production. Its acquisition of a majority stake in the SPC business expands its global presence and adds to its portfolio of pressure control technologies.

The companies said the venture is designed to maintain leadership in global surface pressure control markets while combining the innovation and reach of both organizations. It also continues Baker Hughes’ broader strategy of enhancing the durability of earnings and cash flow by reallocating capital toward higher-return opportunities.

The deal is subject to regulatory approvals and other customary closing conditions. The companies expect to complete the transaction in the second half of 2025.