Cactus has acquired a majority stake in Baker Hughes’ surface pressure control business, focusing on oil and gas equipment. The deal gives Cactus a 65% equity in the joint venture, with Baker Hughes holding 35%. The transaction delivers $344.5m in cash proceeds to Baker Hughes, strengthening its financial position.

Baker Hughes sees this deal as a milestone in its value creation strategy, emphasizing disciplined portfolio management. The joint venture aims to expand its presence in international markets for wellhead and tree equipment. The partnership allows Baker Hughes to reallocate capital for higher returns, boosting earnings and cash flow resilience.

Financial adviser Piper Sandler & Co. assisted Cactus in the acquisition, with Bracewell providing legal counsel. Last year, Baker Hughes secured a multi-year contract with Petrobras for stimulation vessels. The deal signifies a strategic move towards enhancing operational efficiency and capital allocation for both companies.

Read more at Yahoo Finance: Cactus secures majority stake in Baker Hughes’ SPC unit