Cactus Inc. will acquire 65% and assume operational control of Baker Hughes’ Surface Pressure Control Business (SPC). SPC designs, manufactures, and services specialized surface pressure control solutions, primarily wellheads and production tree equipment, for international markets.
Headquartered in Houston, Cactus designs, manufactures, sells, and rents a range of engineered pressure control and spoolable pipe technologies. Its products are principally utilized in onshore unconventional oil and gas wells during their drilling, completion, and production phases. In addition, Cactus provides field services the installation, maintenance, and handling of its equipment. The company operates service centers throughout North America and Australia, while also providing equipment and services in select international markets.
The acquisition establishes Cactus’ position as geographically diversified oilfield equipment manufacturer and transforms Cactus’ geographic footprint, with ~85% of SPC revenues generated in the Middle East and no material US external sales.
Joint Venture
Cactus and Baker Hughes will form a new joint venture that will operate independently from Cactus’ existing pressure control business and will focus on the international market for surface wellhead and production tree systems. Cactus will assume operational control, owning 65% of the joint venture, while Baker Hughes will retain a 35% stake. Any time after the second anniversary of closing, Cactus has the right to purchase, and Baker Hughes has the right to require Cactus to purchase, the remaining 35% interest.
“I am extremely pleased to announce this acquisition today, which is the result of a long, exhaustive process to responsibly enter several of the most important oil and gas markets in the world,” said Scott Bender, chair and chief executive officer (CEO) of Cactus. “The SPC business meets all of our acquisition criteria. Its geographic footprint is highly complementary to Cactus’ existing business, and this combination enables us to expand our reach as a capital-light manufacturer of highly-engineered products sold directly to end users. Additionally, our leadership team’s familiarity with the business, which operates former Wood Group Pressure Control assets that members of our team previously managed, provides increased confidence in operating the business efficiently. We are excited to partner with Baker Hughes in the joint venture operating SPC, as their partnership will be instrumental to transition key administrative services and will assist in a smooth transition of critical customer relationships and long-term contracts.”
“This transaction marks an important step in our ongoing portfolio optimization strategy, enabling us to sharpen our focus on core growth areas while continuing to drive higher returns, reinforcing our commitment to long-term value for our shareholders,” said Baker Hughes Chair and CEO Lorenzo Simonelli. “We remain committed to our valued SPC partners and customers whose operations we have proudly supported, and we believe this joint venture only enhances delivery of innovation and reliability in well control as the combined business will leverage Cactus’ unconventional expertise and agility into international markets.”
