On Jan 2, 2025, Cactus, Inc. WHD announced that it completed the acquisition of a 65% stake in the Surface Pressure Control (SPC) business of Baker Hughes Company BKR, with BKR retaining just 35%, forming a new joint venture (JV).
The deal was initiated on June 2, 2025. BKR estimated the enterprise value of its SPC business to be $530 million, assuming that SPC has no debt and no excess cash on its balance sheet. Cactus paid $344.5 million to acquire the 65% stake in SPC.
Two years following the deal closure, Cactus can opt to buy the outstanding 35% stake or Baker Hughes has the right to require Cactus to do the same.
Following the acquisition, Cactus has diversified its global oilfield equipment footprint and now owns a controlling stake in the newly formed JV with BKR, strengthening WHD’s business model with additional cash flow and resulting in increased investor appeal.
WHD currently sports a Zacks Rank #1 (Strong Buy), whereas BKR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Halliburton Company HAL and Core Laboratories Inc. CLB are two other players in the oil and gas equipment and service Industry. Like BKR and WHD, the business models of HAL and CLB are vulnerable to crude price fluctuations. HAL and CLB currently carry a Zacks Rank #3 each.
Just Released: Zacks Top 10 Stocks for 2026
Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.
From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>Halliburton Company (HAL) : Free Stock Analysis Report
Core Laboratories Inc. (CLB) : Free Stock Analysis Report
Baker Hughes Company (BKR) : Free Stock Analysis Report
Cactus, Inc. (WHD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
