Baker Hughes plans to sell its precision sensors and instrumentation (PSI) product line to industrial products company Crane Co. for about $1.15 billion, the energy tech company said June 9.

The product line includes brands that manufacture instrumentation and sensor-based technologies to detect and analyze pressure, flow, gas, moisture and radiation across various industries.

The sale of the unit, part of the company’s Industrial and Energy Technology (IET) segment, was announced as Baker Hughes continues to shift capital in seek of higher returns. The company has navigated near-term uncertainty amid slower oilfield growth and less spending while aiming to help meet rising energy demand with fewer emissions.

“This transaction continues the progress we have made in enhancing our strategic focus on IET’s core competencies of rotating equipment, asset performance management, flow control and decarbonization to continue to drive higher returns, reinforcing our commitment to long-term value for our shareholders,” Baker Hughes Chairman and CEO Lorenzo Simonelli said. “We believe the value realized in this transaction is a testimony to these product lines’ quality and the potential they can achieve as part of Crane.”

The product line, which employs about 1,600 people globally, includes the Druck, Panametrics and Reuter-Stokes brands. Its 2025 sales are expected to reach approximately $390 million, with adjusted EBITDA of approximately $60 million, according to Crane.

Connecticut-headquartered Crane manufactures engineered components for the aerospace, defense, space and process industry markets. The deal is highly complementary to Crane’s segments.

“These businesses are a perfect fit with Crane’s existing portfolio, enhancing our product portfolio and technology capabilities in key target markets including aerospace & defense, nuclear, industrial process sensing, and water and wastewater,” Crane CEO Max H. Mitchell said.

Baker Hughes’ Panametrics product line adds advanced ultrasonic flow meters and precision moisture analyzers to Crane’s portfolio. It enables the accurate measurement of liquids and gases in industrial areas that include chemical production, LNG transportation, cryogenic gas storage, pipelines, refining and water and wastewater treatment facilities, he said.

The acquisition of the Reuter-Stokes brand is expected to double the size and capabilities of Crane’s existing nuclear business.

“With its industry-leading radiation sensing and detection technologies, Reuter-Stokes enhances our offerings for nuclear plant operations and homeland security,” Mitchell said. “It also positions us strongly to capitalize on the renewed global investment in nuclear energy.”

In addition, the Druck brand also enables Crane’s expansion in ground-based test and calibration equipment for its aerospace and electronics segment.

Subject to customary conditions, including regulatory approvals, the transaction is expected to close at the end of 2025 or early 2026, Baker Hughes said. All assets of the business, including intellectual property, footprint and resources, are included in the sale, Baker Hughes said.

The product line is part of the Industrial & Energy Technology segment, which Baker Hughes in April said started the year booking $2.7 billion of orders, excluding LNG equipment.

Evercore is serving as financial adviser for Baker Hughes on the PSI transaction with Crane.

The planned divestiture was announced about a week after Baker Hughes said Cactus Inc., an oilfield equipment maker, agreed to acquire a controlling interest in Baker Hughes’ surface pressure control business for $344.5 million. The acquisition is expected to close in second-half 2025.

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