Cactus (NYSE: WHD) announced on Friday, January 2, 2026, the completion of its acquisition of a 65% controlling interest in Baker Hughes’ Surface Pressure Control (SPC) business.
The transaction, valued at approximately $344.5 million in cash, marks a milestone in Cactus’ evolution from a North American unconventional specialist to a diversified global oilfield equipment manufacturer.
Under the terms of the deal, Cactus and Baker Hughes (NASDAQ:BKR) have formed a joint venture to operate the SPC business, with Baker Hughes retaining a 35% equity stake.
The new structure allows Cactus to assume full operational control of a business segment that designs and services specialized wellheads and production trees.
Notably, Cactus has the right to purchase the remaining 35% interest starting in 2028.
The move is strategically timed to offset recent volatility in the U.S. onshore market.
While Cactus has historically focused on domestic unconventional wells, roughly 85% of SPC’s revenue is generated in international markets—predominantly the Middle East.
The acquisition integrates a substantial backlog of over $600 million in product and aftermarket service orders, providing Cactus with enhanced revenue visibility through 2026.
Financially, the deal is expected to be immediately accretive to Cactus’ earnings per share and cash flow.
To fund the transaction, Cactus utilized cash on hand and its existing credit facility, maintaining a conservative balance sheet with minimal net debt.
For Baker Hughes, the divestiture aligns with its "portfolio optimization" strategy, allowing the energy technology giant to redeploy capital into higher-margin, technology-driven sectors.
Cactus noted that formal financial guidance for the combined entity will be provided later in the first quarter of 2026.