Baker Hughes Co. ( BKR ) announced on Monday that it will sell its Precision Sensors & Instrumentation (PSI) unit to Crane Company ( CR ) for approximately $1.15 billion in cash. The move is part of Baker Hughes’ broader strategy to streamline its portfolio and reallocate capital toward higher-return opportunities.

PSI, a division within Baker Hughes’ Industrial & Energy Technology segment, includes well-known brands such as Druck, Panametrics, and Reuter-Stokes. These brands specialize in sensor-based technologies for measuring pressure, flow, gas, moisture, and radiation.

The unit employs roughly 1,600 people worldwide, and the sale includes all associated assets, including intellectual property and infrastructure.

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Lorenzo Simonelli, Chairman and CEO of Baker Hughes ( BKR ), said the sale supports the company’s renewed focus on core areas like rotating equipment, asset performance management, flow control, and decarbonization. He noted that the divestiture enhances long-term value creation and bolsters the company’s balance sheet.

Crane Company ( CR ) pegged the net value of the deal at $1.06 billion after expected tax benefits, citing PSI’s projected 2025 sales of $390 million and adjusted EBITDA of $60 million.

Max H. Mitchell, Chairman and CEO of Crane, described PSI as “a perfect fit” for its Aerospace & Electronics and Process Flow Technologies divisions.

Mitchell highlighted how the Druck brand will strengthen Crane’s aerospace pressure sensing capabilities while Reuter-Stokes will significantly expand its nuclear detection portfolio. Panametrics, he added, brings advanced flow and moisture measurement solutions that serve a wide range of industrial applications.

Crane expects the acquisition to deliver a 10% return on invested capital within five years, with sales growth projected between 4% and 6%, alongside strong operating leverage. The acquisition will be financed through a mix of cash and new debt, with closing anticipated by late 2025 or early 2026.

Investors may also track relevant ETFs such as the Industrial Select Sector SPDR Fund ( XLI ) and the iShares U.S. Industrials ETF ( IYJ ) .

Price Action: At the last check on Monday, CR shares were trading higher by 1.03% to $179.51, and BKR stock was up 0.11% at $37.94.

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