Baker Hughes Announces Sale of Precision Sensors & Instrumentation Product Line to Crane Company

Rhea-AI Summary

Baker Hughes (BKR) has agreed to sell its Precision Sensors & Instrumentation product line to Crane Company (CR) for $1.15 billion in cash. The sale includes the Druck, Panametrics and Reuter-Stokes brands, which manufacture sensor-based technologies for pressure, flow, gas, moisture and radiation detection across various industries. The business employs 1,600 people globally and includes all assets, intellectual property, facilities and resources. This divestiture aligns with Baker Hughes' strategic portfolio optimization, focusing on core IET competencies in rotating equipment, asset performance management, flow control, and decarbonization. The transaction is expected to close by late 2025 or early 2026, subject to regulatory approvals.

Positive

• Sale price of $1.15 billion in cash strengthens Baker Hughes' financial position
• Strategic alignment with company's focus on core IET competencies for higher returns
• Transaction enables capital reallocation toward higher-return opportunities
• Divestiture enhances earnings and cash flow durability

Negative

• Loss of revenue stream from PSI product line
• Reduction in workforce by approximately 1,600 employees
• Long completion timeline (end of 2025 or early 2026)
• Regulatory approval risks could affect deal closure

Insights

M&A Investment Banker

Baker Hughes' $1.15B divestiture of PSI strengthens focus on core IET segments, enhancing capital allocation flexibility and shareholder returns.

Baker Hughes' $1.15 billion sale of its Precision Sensors & Instrumentation business to Crane Company represents a significant portfolio optimization move that should be viewed as part of a broader strategic realignment. This transaction, coupled with the previously announced Surface Pressure Control divestiture, demonstrates management's commitment to streamlining operations around higher-margin core competencies.

The divested PSI unit includes three established industrial brands (Druck, Panametrics, and Reuter-Stokes) with approximately 1,600 employees across global operations. While specific revenue and profitability figures for the unit aren't disclosed, the $1.15 billion all-cash consideration suggests Baker Hughes is receiving a reasonable valuation while eliminating a non-core business segment.

Most importantly, this transaction advances Baker Hughes' strategic focus on its Industrial & Energy Technology segment's core competencies: rotating equipment, asset performance management, flow control, and decarbonization technologies. These areas typically command higher margins and offer more sustainable competitive advantages than the divested sensor businesses.

For shareholders, this move potentially delivers three key benefits: (1) increased earnings quality through higher-margin business concentration, (2) enhanced capital redeployment optionality with the cash infusion, and (3) improved operational focus on Baker Hughes' strongest competitive positions. The transaction's expected closing timeframe (end of 2025 or early 2026) indicates standard regulatory review without anticipated complications.

This strategic pruning signals management's disciplined approach to capital allocation and portfolio management, positioning Baker Hughes to strengthen its competitive position in its most profitable segments while potentially returning more capital to shareholders.

• Product line includes Druck, Panametrics and Reuter-Stokes brands
• Transaction aligns with Baker Hughes’ ongoing portfolio optimization

HOUSTON and LONDON, June 09, 2025 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Monday an agreement to sell its Precision Sensors & Instrumentation (PSI) product line to Crane Company (NYSE: CR, “Crane”), a diversified manufacturer of engineered industrial products, for a total cash consideration of approximately $1.15 billion.

PSI, part of Baker Hughes’ Industrial & Energy Technology (IET) segment, includes the Druck, Panametrics and Reuter-Stokes brands. These brands manufacture instrumentation and sensor-based technologies to detect and analyze pressure, flow, gas, moisture and radiation across various industries. PSI employs approximately 1,600 people across several manufacturing and service facilities globally. The sale encompasses all assets of the business, including intellectual property, footprint and resources.

This divestiture, along with the recently announced Surface Pressure Control transaction, is aligned with Baker Hughes’ focus on value-creating portfolio management that enhances the durability of earnings and cash flow and enables the company to reallocate capital toward higher-return opportunities using a strategic and disciplined approach to capital deployment.

“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 decarbonization to continue to drive higher returns, reinforcing our commitment to long-term value for our shareholders,” Baker Hughes Chairman and CEO Lorenzo Simonelli said. “We believe the value realized in this transaction is a testimony to these product lines’ quality and the potential they can achieve as part of Crane.”

Crane is a leading manufacturer of highly engineered components for challenging, mission-critical applications focused on the aerospace, defense, space and process industry end markets.

The closing of the transaction is subject to customary conditions, including regulatory approvals, and is expected to close at the end of 2025 or early 2026.

Evercore is serving as financial adviser for Baker Hughes on this transaction.

About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.

For more information, please contact:

Media Relations

Adrienne M. Lynch
+1 713-906-8407
adrienne.lynch@bakerhughes.com

Investor Relations

Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com   

FAQ

What is the value of Baker Hughes' (BKR) sale of Precision Sensors & Instrumentation to Crane Company?

Baker Hughes is selling its PSI product line to Crane Company for approximately $1.15 billion in cash.

What brands are included in Baker Hughes' PSI product line sale?

The sale includes three brands: Druck, Panametrics and Reuter-Stokes, which manufacture instrumentation and sensor-based technologies.

How many employees will be affected by Baker Hughes' PSI sale to Crane?

The PSI product line employs approximately 1,600 people across several global manufacturing and service facilities.

When is the Baker Hughes PSI sale to Crane expected to close?

The transaction is expected to close at the end of 2025 or early 2026, subject to regulatory approvals.

Why is Baker Hughes (BKR) selling its Precision Sensors & Instrumentation business?

The sale aligns with Baker Hughes' strategy to optimize its portfolio, enhance earnings durability, and reallocate capital toward higher-return opportunities while focusing on core IET competencies.