Cactus, Inc. (NYSE: WHD) closed a $344.5 million transaction on January 2, 2026 that gives it a 65 % controlling interest in Baker Hughes’s Surface Pressure Control (SPC) business. The deal adds a Middle‑East‑focused operation that already generates roughly 85 % of its revenue from that region, providing Cactus with immediate access to high‑growth unconventional drilling markets and a backlog of more than $600 million in product and aftermarket orders.
The acquisition is a key element of Cactus’s strategy to diversify beyond its U.S. onshore base. By adding SPC’s wellhead and production‑tree expertise, the company expands its pressure‑control portfolio and gains a foothold in a market that is expected to grow faster than the U.S. segment. The transaction is projected to be accretive to earnings and cash flow, with Cactus estimating annualized cost synergies of about $10 million within 12 months of closing. The deal also includes an option to acquire the remaining 35 % of the joint venture two years after closing at a capped valuation, giving Cactus a path to full ownership.
Cactus’s recent financial performance provides context for the deal. In Q1 2025 the company reported revenue of $280.3 million, net income of $54.1 million, and an adjusted EBITDA of $93.8 million, while Q4 2024 revenue was $272.1 million with operating income of $70.5 million and net income of $57.4 million. The acquisition is expected to add a significant portion of the $600 million backlog to Cactus’s top line, improving revenue stability and supporting the company’s capital‑light model of selling highly engineered products directly to end users.
Scott Bender, Chairman and CEO, said the transaction “transforms Cactus by diversifying our geographic footprint and giving us access to new growth markets.” He added that the integration will be straightforward because the SPC business shares overlapping product lines and operational standards. Bender also highlighted the strategic value of the Middle‑East focus, noting that the region’s share of SPC revenue reduces Cactus’s exposure to U.S. market cycles and positions the company for long‑term upside.
The deal strengthens Cactus’s competitive position in the global pressure‑control market. By combining its existing Pressure Control and Spoolable Technologies segments with SPC’s wellhead and production‑tree capabilities, the company can offer a broader product suite to customers. The acquisition also mitigates tariff headwinds that have pressured margins, as Cactus has been expanding production in Vietnam and sourcing alternative materials to offset steel tariff impacts. Overall, the transaction is expected to enhance profitability, support future product development, and reinforce Cactus’s strategy of pursuing high‑margin, high‑growth opportunities abroad.
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