Baker Hughes, Cactus complete JV deal

Baker Hughes has completed the previously announced joint venture with a subsidiary of Cactus, Inc., contributing its surface pressure control (SPC) product line into the new entity as part of a broader portfolio optimization strategy.

Under the terms of the transaction, Baker Hughes retains a 35% equity interest in the joint venture, while Cactus holds a controlling 65% stake. The partnership combines Baker Hughes’ SPC technologies with Cactus’ manufacturing, service and operational capabilities across drilling, completion and production markets.

Scott Bender, chairman and CEO of Cactus, said the transaction represents a significant step forward for the company’s growth strategy.

“I am excited to welcome the talented SPC team to the Cactus organization,” Bender said. “This transaction is transformational for Cactus as it diversifies our geographic footprint and provides us with access to new growth markets. We look forward to operating the business with our long-standing focus on safety, customer execution, margins and returns, which will deliver long-term value to shareholders.”

From Baker Hughes’ perspective, the transaction supports its value-creation strategy by reinforcing disciplined portfolio management, operational execution and capital efficiency. The company has said the joint venture enhances earnings and cash flow durability, enables the redeployment of capital toward higher-return opportunities and provides cash proceeds to further strengthen the balance sheet.

Cactus designs, manufactures, sells and rents highly engineered pressure control and spoolable pipe technologies used primarily in onshore unconventional oil and gas wells. Its products are deployed during the drilling, completion and production phases of customer operations, supported by field services for installation, maintenance and equipment handling. The company operates service centers throughout North America and Australia and provides equipment and services in select international markets.