Cactus Secures 65% Stake in BKR's Surface Pressure Control Business

Core Insights - Cactus, Inc. (WHD) has completed the acquisition of a 65% stake in the Surface Pressure Control (SPC) business of Baker Hughes Company (BKR), forming a new joint venture (JV) [1][4] - The enterprise value of BKR's SPC business is estimated at $530 million, with Cactus paying $344.5 million for the 65% stake [1][4] - After two years, Cactus has the option to purchase the remaining 35% stake, or Baker Hughes can require Cactus to do so [2][4] Company Developments - The acquisition allows Cactus to diversify its global oilfield equipment footprint and strengthens its business model with additional cash flow, enhancing investor appeal [2] - Cactus currently holds a Zacks Rank 1 (Strong Buy), indicating strong market confidence, while Baker Hughes has a Zacks Rank 3 (Hold) [3] Industry Context - Other players in the oil and gas equipment and service industry include Halliburton Company (HAL) and Core Laboratories Inc. (CLB), both of which also carry a Zacks Rank 3 [3] - The business models of WHD, BKR, HAL, and CLB are all vulnerable to fluctuations in crude oil prices [3]