Baker Hughes completes $540 million acquisition of Continental Disc

HOUSTON/LONDON - Energy technology company Baker Hughes (NASDAQ:BKR), with a market capitalization of $42.8 billion and demonstrating strong financial health according to InvestingPro analysis, has completed its previously announced $540 million all-cash acquisition of Continental Disc Corporation (CDC) from investment partnerships managed by Tinicum Incorporated, according to a press release issued Thursday.

The acquisition adds CDC’s critical pressure management solutions to Baker Hughes’ existing valves product line, expanding the company’s reach in the flow control market. Baker Hughes stated that the transaction is expected to be immediately accretive to earnings and cash flow per share, as well as to margins in its Industrial & Energy Technology segment.

Continental Disc Corporation brings a portfolio of products that Baker Hughes described as complementary to its current offerings. The company indicated that CDC’s solutions are well-established in the pressure management sector.

Baker Hughes, which operates in over 120 countries, provides technology solutions to energy and industrial customers globally. The transaction represents a strategic expansion of the company’s product capabilities in specialized flow control applications.

The acquisition was finalized at the previously announced purchase price of $540 million, paid entirely in cash.

In other recent news, Baker Hughes has announced its acquisition of Chart Industries for $13.6 billion, a move that has drawn varied reactions from analysts. Piper Sandler reiterated an Overweight rating for the company, setting a price target of $50, while BMO Capital increased its price target to $53, maintaining an Outperform rating. UBS also raised its price target to $46, viewing the acquisition as aligning with Baker Hughes’ strategic goals. However, Seaport Global Securities downgraded Baker Hughes from Buy to Neutral following the acquisition announcement.

Stifel has raised its price target for Baker Hughes to $50, maintaining a Buy rating, citing strong quarterly results and a positive outlook. The acquisition of Chart Industries is expected to expand and complement Baker Hughes’ Industrial Energy & Technology segment, according to BMO Capital. UBS sees the deal positively as it supports a shift towards higher-margin, life-cycle-based revenues. These developments highlight the mixed analyst sentiment surrounding Baker Hughes’ strategic moves and financial performance.

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