09:25 AM EDT, 06/02/2025 (MT Newswires) -- Baker Hughes ( BKR ) and Cactus (WHD) said Monday they signed an agreement to create a new joint venture to provide surface pressure control services.

The companies said Baker Hughes ( BKR ) will contribute its surface pressure control product line to the joint venture.

Under the terms of the agreement, Cactus will have operational control, and own 65% of the joint venture with Baker Hughes ( BKR ) owning the remaining 35% stake. Cactus will acquire the 65% stake for $344.5 million and will use its cash on hand and funds from its undrawn $225 million revolving credit facility to finance the up-front consideration.

Baker Hughes ( BKR ) said the JV will run independently from Cactus' current pressure control business. Cactus also said that after the second anniversary of the JV, it has the right to acquire and Baker Hughes ( BKR ) has the right to require Cactus to buy the remaining 35% stake.

The parties said they plan to complete the deal in H2.

Baker Hughes' ( BKR ) shares were up 2% in recent premarket activity, while Cactus' stock was 2.2% higher.