Baker Hughes Co. ( BKR ) is making a strategic move to strengthen its industrial portfolio with the planned acquisition of Continental Disc Corporation (CDC) in an all-cash deal valued at approximately $540 million.

Announced Monday, the transaction will add CDC’s pressure relief and vacuum safety products to Baker Hughes’ existing industrial offerings.

CDC, headquartered in Liberty, Missouri, specializes in rupture discs, vacuum valves, flame arrestors, and other safety-critical equipment for a wide range of industries, including pharmaceuticals, aerospace, and oil and gas.

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Lorenzo Simonelli, chairman and CEO of Baker Hughes ( BKR ), called the deal a key step in the company’s portfolio optimization strategy. “CDC’s strong aftermarket profile and product lifecycle alignment makes it a strategic fit,” he said.

The transaction is expected to immediately boost Baker Hughes’ earnings per share, cash flow, and margins within its Industrial & Energy Technology (IET) segment.

CDC’s product suite has a large global footprint and is known for frequent replacement cycles, leading to consistent recurring revenue.

In 2024, roughly 80% of the company’s $109 million in pro forma revenue came from repeat business, reinforcing its high-margin profile and reliability-driven demand model.

This acquisition follows Baker Hughes’ earlier announcements involving the purchase of Surface Pressure Control assets and divestiture of its Precision Sensors & Instrumentation division.

These moves underscore the company’s effort to focus on scalable, high-return businesses aligned with its long-term growth goals.

The acquisition will be financed using Baker Hughes’ available cash and is expected to close in the fourth quarter of 2025. As of March 31, 2025, the company held cash and cash equivalents of $3.277 billion.

Related ETFs: Industrial Select Sector SPDR Fund ( XLI ) , Energy Select Sector SPDR Fund ( XLE )

Price Action: BKR shares are trading higher by 0.29% to $39.16 at last check Monday.

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