Baker Hughes to Sell Precision Sensors & Instrumentation Business to Crane Company in $1.15 Billion Deal
Baker Hughes (NASDAQ: BKR), a global energy technology firm, has announced a definitive agreement to divest its Precision Sensors & Instrumentation (PSI) product line to Crane Company (NYSE: CR) for approximately $1.15 billion in cash. The transaction is expected to close by the end of 2025 or in early 2026, pending regulatory and customary closing conditions.
The PSI product line, which falls under Baker Hughes’ Industrial & Energy Technology (IET) segment, is known for its leading-edge sensor and instrumentation solutions. Included in the transaction are three prominent brands: Druck, Panametrics, and Reuter-Stokes. These brands provide high-performance instrumentation technologies that support applications such as pressure, gas, flow, moisture, and radiation detection across a broad spectrum of industrial, energy, environmental, and scientific domains.
With a workforce of approximately 1,600 employees globally, PSI maintains several manufacturing and service centers worldwide. The deal will transfer all assets associated with the business to Crane, including intellectual property, physical assets, and personnel, thereby ensuring continuity in operations and customer support.
Strategic Refocusing by Baker Hughes
The sale represents another step in Baker Hughes’ broader strategy to streamline its portfolio and enhance long-term shareholder value through disciplined capital allocation. It follows a similar move involving the company’s Surface Pressure Control business. Together, these transactions reflect Baker Hughes’ ongoing effort to concentrate its resources and expertise on core IET domains such as rotating equipment, asset performance management (APM), flow control, and decarbonization technologies.
“This transaction continues the progress we have made in enhancing our strategic focus on IET’s core competencies,” said Lorenzo Simonelli, Chairman and CEO of Baker Hughes. “Our aim is to drive higher returns and reinforce our commitment to delivering long-term value for shareholders. We believe this divestiture showcases the strength and potential of the PSI business and the added value it will bring to Crane Company.”
Simonelli emphasized that the sale allows Baker Hughes to reallocate capital toward areas with stronger long-term growth potential and better alignment with its decarbonization and industrial technology strategies. These include emissions reduction technologies, clean power generation, hydrogen, carbon capture, and efficiency-enhancing digital solutions—areas increasingly critical in the global energy transition.
Crane’s Strategic Acquisition
For Crane Company, a manufacturer of engineered components used in aerospace, defense, space, and high-performance industrial applications, the acquisition marks a significant expansion of its instrumentation and sensing capabilities. The company plans to integrate PSI’s product lines to bolster its presence in process industries and reinforce its reputation as a provider of mission-critical technologies.
Crane has long demonstrated a strategy focused on acquiring specialized, high-margin businesses that serve demanding, reliability-intensive sectors. The PSI product line, with its deep domain expertise, trusted brand equity, and global customer base, fits this strategy well.
With the addition of Druck, Panametrics, and Reuter-Stokes, Crane will significantly expand its analytical instrumentation offerings. Druck specializes in precision pressure measurement solutions for aerospace, transportation, and industrial testing. Panametrics provides ultrasonic flow meters and moisture analyzers for a range of industries, including oil and gas, power generation, and water treatment. Reuter-Stokes, meanwhile, is a recognized name in radiation detection technologies used in nuclear power, safety monitoring, and scientific research.
According to Crane executives, the acquisition not only strengthens its portfolio but also provides access to a talented workforce and an established R&D ecosystem that will support future product development and customer-focused innovation.
Broader Implications for the Energy and Industrial Tech Sectors
The transaction reflects broader industry trends in which energy and industrial companies are reassessing their portfolios to focus on core strengths, sustainability goals, and higher-margin opportunities. As Baker Hughes increases its investments in technologies that support the energy transition, it is streamlining legacy business units that, while still valuable, do not align closely with its long-term strategic direction.
Crane’s acquisition of PSI also underscores growing demand for high-precision instrumentation and sensor technologies. These tools are essential in industries that require real-time data collection, predictive maintenance, and operational efficiency—particularly as industrial sectors embrace digital transformation and automation.
In an environment where decarbonization, reliability, and compliance with evolving regulatory frameworks are top priorities, companies like Crane are positioning themselves to meet rising customer expectations through innovation and product expansion.
Financial and Advisory Roles
The all-cash transaction, valued at approximately $1.15 billion, represents a significant capital deployment by Crane and a substantial monetization event for Baker Hughes. While specific financial details, such as EBITDA multiples or revenue contribution from the PSI business, were not disclosed, the size and strategic nature of the deal indicate its significance for both parties.
Evercore, a global independent investment banking advisory firm, is serving as the exclusive financial adviser to Baker Hughes for the transaction. The firm has previously advised on other significant M&A deals in the energy technology space and brings deep expertise in complex cross-border divestitures and portfolio optimization strategies.
Legal, regulatory, and integration matters will be addressed over the coming months as both parties work toward closing the deal. Once finalized, the divestiture will allow Baker Hughes to further strengthen its balance sheet, reduce operational complexity, and unlock capital for future innovation.
