Baker Hughes announces $1.15 billion deal

Baker Hughes has agreed to sell its Precision Sensors & Instrumentation (PSI) business to Crane Co. for approximately $1.15 billion in cash, a move that advances Baker Hughes’ effort to streamline its portfolio and focus on core industrial and energy technologies.

The transaction, announced June 9, includes globally recognized brands Druck, Panametrics and Reuter-Stokes.

The PSI division, part of Baker Hughes’ Industrial & Energy Technology (IET) segment, specializes in advanced instrumentation used in pressure, flow, gas, moisture, and radiation measurement. The sale covers the entire business, including intellectual property, operational assets and a workforce of about 1,600 employees.

Baker Hughes Chairman and CEO Lorenzo Simonelli said the sale aligns with the company’s capital deployment strategy. “This transaction continues the progress we have made in enhancing our strategic focus on IET’s core competencies of rotating equipment, asset performance management, flow control and decarbonization,” Simonelli said. “We believe the value realized in this transaction is a testimony to these product lines’ quality and the potential they can achieve as part of Crane.”

Crane Co., a manufacturer of highly engineered industrial components, sees the acquisition as a transformative step in its long-term growth strategy. The PSI portfolio will bolster Crane’s capabilities across both of its operating segments: Aerospace & Electronics and Process Flow Technologies.

“PSI is a unique asset with three iconic brands that are highly complementary to both of our segments,” said Max H. Mitchell, Crane’s chairman, president and CEO. “The bottom line is that PSI is a global leader in highly sophisticated sensor-based technologies for mission-critical applications in harsh and hazardous environments. These businesses are a perfect fit with Crane’s existing portfolio.”

Mitchell said the Druck brand will expand Crane’s pressure sensing offerings in aerospace applications, including environmental control systems, hydraulics and engine monitoring, with reach across both single-aisle and widebody aircraft. Druck will also introduce new capabilities in ground-based test and calibration equipment.

Reuter-Stokes is expected to double the size of Crane’s existing nuclear-related operations, offering leading radiation detection technologies for nuclear plants and homeland security. Meanwhile, Panametrics brings in ultrasonic flow and moisture sensing tools used in LNG transportation, cryogenic storage, refining, and wastewater applications—strengthening Crane’s presence in the process industries.

Mitchell said the PSI acquisition meets all of Crane’s financial and strategic benchmarks, including a targeted return on invested capital (ROIC) of 10% within five years. The company expects PSI to contribute annual sales growth of 4% to 6% and sees margin improvement potential through Crane’s business systems and operational integration.

Following the deal, Crane expects to maintain a healthy balance sheet, with a projected net debt to adjusted EBITDA ratio of about 1.0x. The acquisition will be financed with a combination of cash on hand and additional debt.

Alex Alcala, Crane’s executive vice president and COO, said the deal marks a key milestone in the company’s post-2023 separation strategy. “We have a proven track record of creating value through acquisitions,” Alcala said. “We believe that the strong fit of PSI with our existing business, combined with our consistently differentiated execution, will drive attractive financial returns.”

The transaction is expected to close by late 2025 or early 2026, subject to regulatory approvals and customary conditions.