Baker Hughes, an energy technology company, announced Monday that it has agreed to acquire Continental Disc Corporation, a leading provider of safety-critical pressure management solutions, from investment partnerships managed by Tinicum Incorporated in an all-cash transaction valued at approximately $540 million.
Continental Disc Corporation, headquartered in Liberty, Missouri, specialises in designing and manufacturing rupture discs, rupture disc holders, burst disc indicators, pressure- and vacuum-relief valves, flame and detonation arrestors, and related safety products. The company’s products serve as highly complementary additions to Baker Hughes Industrial & Energy Technology’s (IET) existing Control Valve and High-Pressure Relief Valve offerings, with deployment across diverse industries including pharmaceutical, chemical, food and beverage, oil and gas, and aerospace markets.
The acquisition targets a company with significant recurring revenue streams, driven by CDC’s large global installed base and essential products that require regular replacement to maintain safety and operational reliability. In 2024, approximately 80% of CDC’s $109 million in proforma revenue was classified as recurring, serving as a key driver of the company’s strong returns and highly accretive margin profile.
The Continental Disc Corporation transaction represents part of Baker Hughes’ broader portfolio optimisation strategy, joining the recently announced Surface Pressure Control (SPC) transaction and the sale of the Precision Sensors & Instrumentation (PSI) product line. These strategic moves reflect the company’s commitment to driving more durable earnings and cash flow through disciplined capital allocation focused on core businesses with compelling return potential.
The acquisition aligns with Baker Hughes’ established acquisition criteria, offering a strong strategic fit with growth and synergy opportunities, accretive margins and returns, and a lifecycle business model that supports long-term aftermarket demand while strengthening earnings quality. The transaction is expected to provide immediate accretion to earnings and cash flow per share, as well as to IET’s segment margins.
Baker Hughes chairman and CEO Lorenzo Simonelli expressed enthusiasm about the strategic addition, stating that the company is excited to enhance its industrial portfolio and expand its addressable market through CDC’s well-established critical pressure management solutions. Simonelli noted that the acquisition, combined with the recently announced SPC and PSI transactions, establishes a blueprint for the company’s portfolio optimisation strategy focused on driving higher returns and creating long-term shareholder value.
Michael Donner, partner of Tinicum, acknowledged the transition while expressing confidence in the strategic fit. Donner indicated that while Tinicum will miss working with CDC’s dedicated team, the firm is pleased to see the business and its employees join Baker Hughes, recognising the potential for exciting new growth opportunities given Baker Hughes’ complementary product lines and global reach.
The acquisition will be financed through existing cash reserves and is expected to close in the fourth quarter of 2025, pending completion of customary conditions and required regulatory approvals.
Baker Hughes has engaged Jefferies as financial adviser and King and Spalding as legal adviser for the transaction. Continental Disc Corporation’s board has retained William Blair & Company and Baird as financial advisers, with Morrison Foerster serving as legal adviser.
For more information visit www.bakerhughes.com
