Baker Hughes, an energy technology company, announced on Monday that it has reached an agreement to acquire Continental Disc Corporation (CDC), a prominent provider of safety-critical pressure management solutions. The all-cash transaction is valued at approximately $540 million and involves investment partnerships managed by Tinicum Incorporated.
CDC, headquartered in Liberty, Missouri, specialises in designing and manufacturing various safety products, including rupture discs, rupture disc holders, burst disc indicators, pressure- and vacuum-relief valves, and flame and detonation arrestors. These offerings complement Baker Hughes Industrial & Energy Technology’s (IET) existing Control Valve and High-Pressure Relief Valve products and are utilised across diverse industries such as pharmaceuticals, chemicals, food and beverage, oil and gas, and aerospace.
With a substantial global installed base, CDC’s essential products require regular replacement, generating significant recurring revenue. In 2024, approximately 80 percent of CDC’s projected revenue of $109 million is expected to be recurring, which is a crucial factor contributing to its strong returns and favourable margin profile.
This acquisition, along with the recently announced Surface Pressure Control (SPC) transaction and the sale of the Precision Sensors & Instrumentation (PSI) product line, supports Baker Hughes’ strategy for portfolio optimisation aimed at enhancing durable earnings and cash flow. The company’s disciplined capital allocation approach focuses on core businesses with promising return potential. The addition of CDC aligns with Baker Hughes’ acquisition criteria, which emphasise strategic fit, growth opportunities, accretive margins, and a lifecycle business model that fosters long-term aftermarket demand and strengthens earnings quality. The acquisition is anticipated to be immediately accretive 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 acquisition, stating that it enhances the company’s industrial portfolio and expands its addressable market with CDC’s established pressure management solutions. He noted that this acquisition, along with the SPC and PSI transactions, lays the groundwork for the company’s portfolio optimisation strategy, focused on driving higher returns and creating long-term value for shareholders.
Michael Donner, partner at Tinicum, remarked on the transition, stating that while the CDC team will be missed, joining Baker Hughes—a leader in global process control and energy technology—will present exciting growth opportunities for the business and its employees, given Baker Hughes’ complementary product lines and extensive global reach.
The acquisition will be financed with cash on hand and is expected to close in the fourth quarter of 2025, pending the completion of customary conditions and regulatory approvals.
Jefferies is acting as financial adviser, and King and Spalding is providing legal counsel to Baker Hughes for this transaction. Meanwhile, William Blair & Company and Baird are serving as financial advisers, and Morrison Foerster is acting as legal adviser to the board of Continental Disc Corporation.
For more information visit www.investors.bakerhughes.com
