Baker Hughes to sell PSI product line to Crane for $1.15bn
Energy technology company Baker Hughes has signed an agreement to divest its Precision Sensors & Instrumentation (PSI) product line to Crane Company for a cash consideration of approximately $1.15bn.
This divestiture is part of Baker Hughes’ strategic focus on portfolio management, aimed at enhancing the durability of earnings and cash flow.
PSI, a part of Baker Hughes’ Industrial & Energy Technology (IET) segment, includes brands such as Druck, Panametrics and Reuter-Stokes.
These brands are known for manufacturing advanced instrumentation and sensor-based technologies that play a crucial role in detecting and analysing pressure, flow, gas, moisture and radiation across a variety of industries.
The PSI division employs around 1,600 people globally, operating across several manufacturing and service facilities.
The sale includes all assets of the business, which comprise intellectual property, footprint and resources.
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By GlobalDataBaker Hughes chairman and CEO Lorenzo Simonelli said: “This transaction continues the progress we have made in enhancing our strategic focus on IET’s core competencies of rotating equipment, asset performance management, flow control, and decarbonisation to continue to drive higher returns, reinforcing our commitment to long-term value for our shareholders.
“We believe the value realised in this transaction is a testimony to these product lines’ quality and the potential they can achieve as part of Crane.”
The completion of this transaction is subject to customary conditions including the necessary regulatory approvals. It is anticipated to close by the end of 2025 or early 2026.
Evercore is acting as the financial adviser for Baker Hughes on this transaction.
The transaction allows Baker Hughes to redirect capital towards higher-return opportunities through a disciplined approach to capital allocation.
It follows the previously announced transaction to create a joint venture (JV) with Cactus Companies in the company’s Surface Pressure Control business. Cactus Companies will hold a 65% controlling interest in the JV, while Baker Hughes will hold a 35% interest.
Also, in March, Baker Hughes announced a multi-year contract with Dubai Petroleum Establishment, on behalf of the Dubai Supply Authority, to provide integrated coiled-tubing drilling services for the Margham gas storage project in Dubai.
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