Baker Hughes (BKR), an energy technology company has agreed to acquire Continental Disc Corporation (CDC), a provider of safety-critical pressure management solutions, from investment partnerships managed by Tinicum Incorporated in an all-cash transaction for approximately USD 540M.
Headquartered in Liberty, Missouri, CDC designs and manufactures rupture discs, rupture disc holders, burst disc indicators, pressure- and vacuum-relief valves, flame and detonation arrestors, and related safety products. These products, which are highly complementary to Baker Hughes Industrial & Energy Technology’s (IET) existing Control Valve and High-Pressure Relief Valve offerings, are deployed across a broad range of industries, including applications across pharmaceutical, chemical, food and beverage, oil and gas, and aerospace markets.
With a large global installed base and essential products that require regular replacement to maintain safety and operational reliability, CDC generates significant recurring revenue. In 2024, approximately 80% of CDC’s USD 109M in proforma revenue was recurring – a key driver of its strong returns and highly accretive margin profile.
The CDC acquisition, along with the recently announced Surface Pressure Control (SPC) transaction and sale of the Precision Sensors & Instrumentation (PSI) product line, advances Baker Hughes’ portfolio optimization strategy designed to drive more durable earnings and cash flow. These actions reflect the company’s disciplined approach to capital allocation, with a focus on core businesses that offer compelling return potential.