Energy technology company Baker Hughes is set to divest its Precision Sensors and Instrumentation (PSI) product line to industrial manufacturer Crane in a $1.15 billion deal. The sale is part of Baker Hughes’ move to streamline its portfolio and focus more on clean energy investments. For Crane, the acquisition is expected to support long-term growth by expanding its offerings in aerospace and process flow markets.
After a business restructuring in 2022, Baker Hughes primarily operates through two main segments. The Oilfield Services & Equipment (OFSE) segment provides technologies for onshore and offshore oil and gas extraction, while the Industrial & Energy Technology (IET) segment offers equipment and services for energy transformation and transport.
Under Baker Hughes’ IET business is the PSI product line. It includes three sensor-based technology brands used across various industries:
- Druck: specializes in pressure sensing
- Panametrics: focuses on flow measurement
- Reuter-Stokes: provides radiation detection solutions
Baker Hughes’ portfolio optimization
With the global energy transition, Baker Hughes seeks to optimize their portfolio by reallocating capital from non-core assets to energy innovations with stronger return potentials. In its IET segment, the company is prioritizing research and development in hydrogen fuel, geothermal energy, and digital tools for tracking and reducing carbon emissions.
Aside from the PSI sale, the portfolio optimization also initiated a joint venture with Cactus, a manufacturer of pressure control equipment for oil and gas drilling. The agreement grants Cactus majority ownership and operational control of Baker Hughes’ Surface Pressure Control product line.
Baker Hughes is also set to acquire Chart Industries, a product and solutions provider in clean energy and industrial gas markets. The acquisition aims to advance Baker Hughes’ position in sustainable energy technologies, thereby expanding its addressable market.
Baker Hughes: Patenting Activity
Baker Hughes has maintained strong patenting activity over the past decade. Filings peaked in 2016, coinciding with the start of its merger with GE Oil & Gas, which was finalized in mid-2017.
The combination of Baker Hughes’ oilfield products and services with GE’s digital solutions and technology improved productivity in the entire oil and gas development pipeline. In particular, Baker Hughes gained access to Predix, a cloud-based platform by GE that provides useful data analytics in various industries, including oil and gas.
Baker Hughes also partnered with KBC Advanced Technologies to integrate its Petro-SIM simulation models with GE’s Predix platform, strengthening its capabilities across the oil and gas value chain.
In 2019, the company began expanding its new energy portfolio, starting its shift from an oilfield services provider to a broader energy technology company.
Baker Hughes: Top Technology Areas
A vast majority of Baker Hughes’ patents fall under E21B, comprising innovations in earth drilling to extract oil, gas, and other materials. This number reflects the company’s long-established well construction and drilling operations since 1987.
A significant number of filings fall under G01V, which includes radar, sonar, lidar, and other systems used for geophysical detection and measurement. This is followed by G01N, relating to the analysis of the chemical or physical properties of materials. The company also holds patents under C09K, covering materials for miscellaneous applications.
These classifications reflect Baker Hughes’ broad technological scope, extending beyond oil field operations and encompassing energy transformation and transport.
Baker Hughes: Top Jurisdictions
Baker Hughes operates in more than 120 countries worldwide. The company is co-headquartered in the United States and the United Kingdom, where most of its patents are filed. It also has a significant presence in other countries in America and Europe, including Norway, Canada, and Brazil, where multiple land and offshore rigs are located.
Outside these regions, a considerable number of patent filings are in the jurisdiction of China, Australia, and Saudi Arabia. Baker Hughes also has applications for international patent protection under the European Patent Office and the World Intellectual Property Organization.
Baker Hughes: Top Law Firms
Cantor Colburn LLP holds a significant lead in patent filings among legal representatives. This is followed by ITIP Canada and Novagraaf Group, which were acquired by Questel in 2017 and 2021, respectively.
Given the company’s broad international presence, many filings were managed by law firms across multiple countries outside North America. These include Marks & Clerk in the United Kingdom, FPA Patent Attorneys in Australia, and CCPIT Patent and Trademark Law Office in China.
Notably, Baker Hughes also has its in-house intellectual property counsel that serves as legal representatives in certain patent filings. This reflects the company’s active role in managing and protecting its innovations through direct legal oversight.
Patents behind Baker Hughes’ precision sensors and instrumentation (PSI) line
Baker Hughes’ Precision Sensors and Instrumentation (PSI) product line offers sensor-based technologies in aerospace, nuclear, wastewater, and other industrial systems. It comprises three established brands, namely Druck, Panametrics, and Reuter-Stokes.
Druck’s high-sensitivity pressure sensors
Druck develops different pressure sensors, transducers, and calibration instruments. Among the patents that describe their pressure sensing modules is U.S. Patent No. 11,137,308, titled “High sensitivity pressure sensor package”.
The patent includes a body with primary and secondary diaphragms in its sensor and annular chambers, where fluid pressures are received from two different inputs. The pressure is then transmitted to the corresponding face of the differential pressure sensor to determine the pressure difference between the fluids.
The system was invented by Russell Craddock and Martin Marshall. Its patent was filed on January 2, 2019, and was granted on October 5, 2021. The filing was represented by a legal team from Mintz and Baker Hughes, with Fred Hernandez, Lisa Adams, Carlo Cotrone, et al.
Panametrics’ ultrasonic flow measurement systems
Another brand of products under the PSI line is Panametrics, which offers instruments for monitoring and evaluating moisture, oxygen, liquid, steam, and gas flow. Such flow measurement systems and methods are described in U.S. Patent App. No. 2022/0018695, titled “In situ ultrasonic flow meter validation”.
The invention features an ultrasonic flow measurement system, wherein acoustic waves are passed through a gas mixture flowing through a pipe. The speed of the acoustic signal is measured by a pair of transducers in the flow meter, which can be used to determine properties of the gas mixture, such as composition and flow velocity.
Aside from the flow measurements, the patent also involves a validation system that can track the accuracy of the flow meter, monitor whether its components require maintenance, and check if it can be recalibrated in situ.
The patent was filed on November 27, 2019, with a provisional application on November 30, 2018. The system was invented by Yufeng Huang, Chong Tao, Daniel Robert Johnson, Aniruddha S. Weling, Anthony Kowal, and Lei Sui. The filing was represented by a legal team from Mintz and Baker Hughes, with Fred Hernandez, Lisa Adams, Carlo Cotrone, et al.
Reuter-Stokes’ nuclear instrumentation and radiation detectors
The PSI line also includes Reuter-Stokes, a brand that manufactures nuclear reactor instrumentation, gamma and neutron detectors, UV flame sensors, and downhole monitoring systems. A technology under this brand is described in U.S. Patent No. 10,436,933, titled “Digital spectrometer for measuring ironizing radiation downhole”.
The patent includes a radiation detector that generates analog signals in response to the absorption of ionizing radiation. A spectrometer converts the analog signals into digital signals, which are processed through a digital filter array to sort based on energy values. This produces time-dependent and energy-dependent radiation counts. Radionuclide concentrations can then be estimated, which aids in the exploration of oil and gas-bearing zones.
The apparatus was invented by Quming Zhou, Toyli Anniyev, Feyzi Inanc, and Steven Bliven. Its patent was filed on May 6, 2016, and was granted on October 8, 2019. The filing was represented by a legal team from Crowe & Dunlevy and Baker Hughes, with Stephen Littlefield, David Mossman, Matt Carson, et al.
Expansion of Crane products
With the acquisition of the PSI product line, Crane gains access to intellectual property and resources complementary to their current offerings.
Crane’s Aerospace & Electronics segment primarily supplies components and systems for aerospace, defense, and space markets. The addition of Druck strengthens their pressure sensing technologies, currently focused on engine monitoring in commercial and military aircraft, and widens their market reach into ground-based equipment.
On the other hand, Crane’s Process Flow Technologies segment serves the chemical, pharmaceutical, wastewater, and general industrial markets. Panametrics flow meters expand the segment’s capabilities in LNG transport and water treatment, while Reuter-Stokes enhances its offerings in nuclear power and homeland security.
The acquisition is expected to support margin expansion and long-term sales growth for Crane, with PSI sales projected to reach approximately $390 million in 2025. The transaction is anticipated to close by late 2025 or early 2026.
