Baker Hughes, an energy technology company, announced an agreement to establish a new joint venture (JV) with a subsidiary of Cactus. Under the terms of the agreement, Baker Hughes will contribute its Surface Pressure Control (SPC) product line to the JV.

Cactus, a global manufacturer and service provider of pressure control equipment for oil and gas drilling, completions, and production will assume operational control and hold a 65 per cent ownership stake, while Baker Hughes will retain a 35 per cent interest.

The JV will operate independently from Cactus’ existing Pressure Control business and will focus on maintaining its leadership position in the international market for surface wellhead and production tree systems.

This targeted portfolio refinement is aligned with Baker Hughes’ focus on enhancing the durability of earnings and cash flow and will enable the company to reallocate capital toward higher-return opportunities. At the same time, the company will maintain a strategic and disciplined approach to capital deployment.

“This transaction represents a significant milestone in our ongoing portfolio optimization strategy, allowing us to sharpen our focus on core growth areas and continue driving higher returns—reinforcing our commitment to delivering long-term value to shareholders,” said Lorenzo Simonelli, Chairman and CEO of Baker Hughes.

“We remain dedicated to our valued SPC partners and customers, whose operations we have proudly supported. We believe this joint venture will enhance the delivery of innovation and reliability in well control by combining Cactus agility and expertise in unconventional markets with expanded international reach.”

The closing of the transaction is subject to customary conditions, including regulatory approvals, and is expected to close in the second half of 2025.