Cactus Inc. Finalizes Baker Hughes Deal, Forging a New Global Player

HOUSTON, TX – January 02, 2026 – Cactus, Inc. (NYSE: WHD) today announced it has officially closed its previously announced acquisition of a 65% controlling interest in Baker Hughes Company’s Surface Pressure Control (SPC) business. The landmark transaction, valued at $344.5 million in cash, establishes a new joint venture and marks a pivotal strategic shift for Cactus, transforming it from a primarily North American-focused company into a diversified global competitor in the oilfield services sector.

The deal gives Cactus majority ownership of a business with a formidable international presence, particularly in the Middle East, and a substantial backlog of orders. Scott Bender, Chairman and CEO of Cactus, heralded the move as a significant milestone for the company and its stakeholders.

“I am excited to welcome the talented SPC team to the Cactus organization,” Bender commented in a statement. “This transaction is transformational for Cactus as it diversifies our geographic footprint and provides us with access to new growth markets. We look forward to operating the Business with our long-standing focus on safety, customer execution, margins, and returns, which will deliver long-term value to shareholders.”

A Transformational Shift in Strategy

The strategic rationale behind the acquisition is clear: diversification and expansion. Prior to this deal, Cactus's operations were heavily concentrated in the onshore unconventional oil and gas plays of North America. The integration of the SPC business fundamentally alters this dynamic. Research indicates that approximately 85% of the SPC business's historical revenues were generated from international markets, with a strong foothold in the Middle East. This immediately provides Cactus with a robust international revenue stream, reducing its dependence on the cyclical nature of the North American shale market.

The acquired business specializes in the design, manufacture, and servicing of wellheads and production tree equipment, complementing Cactus's existing portfolio of highly engineered pressure control and spoolable pipe technologies. This expanded product suite allows the combined entity to offer a more comprehensive range of solutions across the drilling, completion, and production phases of oil and gas wells, catering to both conventional and unconventional resource plays worldwide.

For Baker Hughes, the divestiture of a majority stake aligns with its ongoing strategy of disciplined portfolio management. The transaction allows the energy technology giant to redeploy capital toward what it deems higher-return opportunities while retaining a significant 35% interest in the joint venture, enabling it to share in the future success of the SPC business.

Unpacking the Financials of the Joint Venture

Under the terms of the agreement, Cactus acquired its 65% interest in the newly formed joint venture, Baker Hughes Pressure Control LLC, for a cash payment of $344.5 million. The deal was funded with cash on hand and structured on a debt-free, largely cash-free basis, allowing Cactus to maintain a conservative balance sheet. The joint venture itself will retain approximately $70 million in minimum cash to support its operations.

A key financial highlight of the acquisition is the substantial product and aftermarket service backlog associated with the SPC business, which was reported at over $600 million at the time of the deal's announcement in mid-2025. This significant backlog is expected to provide Cactus with enhanced revenue, earnings, and cash flow visibility for the foreseeable future, adding a layer of stability to its financial performance.

The structure of the deal also includes carefully planned exit options for both parties. According to the amended LLC agreement, both Cactus and Baker Hughes have buyout options that become available after the second anniversary of the closing. The valuation for such a buyout is predetermined, based on a multiple of six times the business's Adjusted EBITDA, with a valuation cap of $660 million and a floor of $530 million if Cactus initiates the buyout. This arrangement provides a clear path for the future ownership structure of the venture.

Cactus has stated that it will provide formal financial guidance for the newly integrated business later in the first quarter of 2026, which will offer investors the first detailed look at the projected financial impact of this transformational deal.

Navigating Integration and Future Growth

With the transaction now complete, the focus shifts to integration and execution. The opportunities are significant, led by the immediate geographic expansion and product diversification. However, the path forward also presents notable challenges. Integrating a globally oriented business unit with deep roots in international markets into Cactus's historically North American-centric culture will require careful management to harmonize operational practices and corporate values.

Cactus's leadership team is not entirely unfamiliar with the new assets, possessing some familiarity with the former Wood Group Pressure Control business that constitutes a part of the SPC portfolio. This prior knowledge could help facilitate a smoother operational integration. Furthermore, the partnership with Baker Hughes is a critical component for ensuring a seamless transition. Baker Hughes will continue to provide support for administrative services and, crucially, help maintain continuity with key international customers and long-term contracts.

Ensuring the retention of the SPC business's established customer base in the Middle East and other international regions will be paramount to the joint venture's success. The combination of Cactus's lean operational philosophy and the SPC business's established market presence and technology creates a powerful new entity in the surface pressure control landscape. The successful fusion of these two organizations is poised to not only drive growth for Cactus but also reshape the competitive dynamics within the global oilfield equipment and services industry.