2025-06-02 14:37Transaction Overview - Cactus will acquire 65% of Baker Hughes' Surface Pressure Control (SPC) business for $344.5 million, valuing SPC at $530 million on a cash-free, debt-free basis[9] - The upfront purchase price of 65% represents approximately 6.7x 2024 Transaction Adjusted EBITDA[9] - Cactus expects to achieve annualized cost synergies of approximately $10 million within 12 months of closing[9] SPC Business Highlights - SPC's 2024 revenue was $498 million with an Adjusted EBITDA of $87 million, resulting in a 17% Adjusted EBITDA Margin[10] - SPC had a backlog of over $600 million as of December 31, 2024[9, 10] - Approximately 85% of SPC's revenues come from the Middle East[10] - SPC's 2024 Aftermarket Service Revenue was over $150 million[10] Pro Forma Financials (2024, Excluding Synergies) - Combined Cactus and SPC revenue would be $1,628 million ($1.13 billion from Cactus and $498 million from SPC)[22] - Combined Adjusted EBITDA would be $479 million ($392 million from Cactus and $87 million from SPC)[22] - The combined Adjusted EBITDA Margin would be 29% (35% from Cactus and 17% from SPC)[22]