Houston energy technology company Baker Hughes said Monday that it agreed to sell its Waygate Technologies business to Hexagon, a Swedish measurement technologies firm, for about $1.45 billion cash.
King & Spalding advised Baker Hughes from Atlanta with a team led by Erik Belenky. Baker Hughes’ Chief Legal Officer is Georgia Magno, who has been part of the company’s in-house legal department for more than nine years.
Waygate Technologies, based in Pasadena near Galveston Bay, provides testing for the inspection of critical assets, and the sale includes all of its remote visual inspection, ultrasound, radiography and imaging services portfolios.
“By combining Waygate’s [non-destructive testing] expertise with Hexagon’s precision measurement portfolio, software capabilities, and global infrastructure, we will create a uniquely integrated offering that helps our customers achieve higher quality, greater efficiency, and improved confidence across the full product lifecycle,” Hexagon President and CEO Anders Svensson said.
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Baker Hughes Chairman and CEO Lorenzo Simonelli said the sale is part of the company’s decision to focus on core operations of rotating equipment, flow control, digital, production optimization and decarbonization.
In July, Baker Hughes announced the acquisition of Chart Industries for about $13.6 billion, as part of an expansion in LNG and data centers. Based about an hour north of Atlanta, Chart Industries provides technology and equipment for gas and liquid molecule handling.
In January, Baker Hughes closed a joint venture transaction, retaining 35 percent of its surface pressure control business with Cactus Inc. owning the other 65 percent in a deal valuing the venture at $530 million. The company also completed the $1.15 billion sale of its Precision Sensors & Instrumentation manufacturing operations to Crane Co. in January. Last August, Baker Hughes closed the acquisition of Continental Disc Corp., a Missouri-based maker of pressure valves, from infrastructure investor Tinicum for $540 million in cash.
Based in Stockholm, Hexagon operates in 50 countries, providing precision measurement, positioning, and autonomous services to the aerospace and defense, automotive, construction, general manufacturing and mining industries.
JPMorgan Securities is the exclusive financial advisor to Baker Hughes on the Hexagon transaction that is expected to close in the second half of this year.
King & Spalding’s Connor Ciepluch, Jacob Weber, Nick Nelson, Laura Huffman and John Kleinjan advised Baker Hughes from Atlanta, with Hap Shashy, Sydney Lampard and Joe Eisert in Washington, D.C., and Peter Memminger in Frankfurt.