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Investing.com -- Cactus (NYSE:WHD) Companies, a unit of Cactus, is set to buy a controlling interest of 65% in the Surface Pressure Control (SPC) business of Baker Hughes (NASDAQ:BKR), according to an announcement on Monday.
The deal, worth $344.5 million, will leave Baker Hughes with a 35% ownership in the SPC business following the deal’s completion.
The total enterprise deal value is estimated at $530 million on a cash-free, debt-free basis. After the deal closes, Cactus will hold the SPC business, with Baker Hughes retaining a 35% stake.
Two years following the deal’s closure, Cactus is entitled to purchase, and Baker Hughes can demand Cactus to buy, the remaining 35% stake.
To finance this acquisition, Cactus plans to utilize its cash on hand along with a $225 million revolving facility.
The deal is anticipated to be finalized in the second half of 2025.
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