Baker Hughes acquires Continental Disc in $540 million deal

Baker Hughes has agreed to acquire Continental Disc Corp. (CDC), a specialist in pressure management safety equipment with oil and gas applications, in an all-cash transaction valued at approximately $540 million.

The deal will bolster Baker Hughes’ Industrial & Energy Technology (IET) segment with high-margin, recurring revenue tied to critical safety systems, the company said.

Headquartered in Liberty, Missouri, CDC manufactures rupture discs, relief valves, flame arrestors and other safety components used across multiple industries. These products are essential to pressure control systems in refining, chemical processing, and upstream oil and gas operations—especially in facilities that require high-pressure, high-reliability safeguards.

For Baker Hughes, the acquisition aligns with a broader strategy to reshape its portfolio around higher-return businesses that offer strong aftermarket potential. Roughly 80% of CDC’s expected $109 million in 2024 revenue is recurring, a characteristic that fits squarely with Baker Hughes’ effort to boost earnings quality and cash flow consistency.

“This acquisition sets the blueprint for our portfolio optimization strategy – focused on driving higher returns and creating long-term value for our shareholders,” said Lorenzo Simonelli, Baker Hughes chairman and CEO. “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.”

The CDC acquisition follows two recent portfolio moves by Baker Hughes: the planned acquisition of SLB’s Surface Pressure Control business and the divestiture of its Precision Sensors & Instrumentation unit. Taken together, the transactions represent a strategic reshuffling of the company’s industrial technologies to focus on scalable, lifecycle-driven platforms that support global energy and process customers.

In the oil and gas sector, rupture discs and relief valves are commonly deployed in production, processing and transportation systems to guard against over-pressurization, fire hazards, and explosive environments. These safety-critical systems must be routinely maintained or replaced, generating a dependable aftermarket revenue stream—a key draw for Baker Hughes.

“The addition of CDC aligns with our 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,” the company said in a statement.

The transaction will be funded with cash on hand and is expected to close in the fourth quarter of 2025, subject to customary regulatory approvals. Jefferies is serving as financial adviser and King & Spalding as legal counsel for Baker Hughes. Continental Disc was advised by William Blair & Company, Baird, and law firm Morrison Foerster.

Baker Hughes operates in more than 120 countries and provides a broad range of technology and services to the oil, gas and energy sectors. The company has been pursuing a strategy of disciplined capital allocation, focusing on businesses with durable earnings profiles and exposure to long-term energy transition trends.

Continental Disc is currently owned by investment partnerships managed by Tinicum Inc., a private firm with holdings in manufacturing and industrial technology businesses. Tinicum partner Michael Donner said he was confident CDC would thrive under Baker Hughes’ global reach and complementary product offerings.

“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,” Donner said.