Cactus Takes Majority Stake In Baker Hughes' SPC For Global Reach

Zinger Key Points

Cactus will own 65% and lead operations of SPC joint venture with Baker Hughes holding 35%.
The deal boosts Cactus' presence in Middle East markets and strengthens visibility with a $600M order backlog.
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Cactus Inc. WHD will become the majority owner of a new joint venture with Baker Hughes Co. BKR, which will take control of BKR’s Surface Pressure Control (SPC) business. The agreement, announced Monday, marks a strategic realignment as both companies look to expand their global oilfield equipment footprint.

Baker Hughes will retain a 35% stake, while Cactus will acquire 65% and operational control. The venture, which will function separately from Cactus’ existing pressure control division, will focus on supplying wellhead and production tree systems to international markets.

The move supports Baker Hughes’ efforts to streamline its portfolio and allocate capital to higher-return segments. CEO Lorenzo Simonelli said the deal helps sharpen the company’s strategic focus while ensuring continuity for SPC clients. He added that the partnership brings together Cactus’s agility and Baker Hughes’ global scale to boost innovation in well-controlled systems.

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Cactus CEO Scott Bender highlighted the value of SPC’s global reach, with around 85% of its revenue tied to the Middle East. The acquisition reduces Cactus’s exposure to the U.S. market and adds a $600 million order backlog, providing strong revenue visibility and cash flow stability.

The $530 million joint venture values Cactus’ 65% share at $344.5 million. The company intends to fund the deal using existing cash and may tap its unused $225 million credit facility. The agreement includes an option for Cactus to buy the remaining 35% after two years. The transaction is expected to close in the second half of 2025.