Chart Industries and Flowserve Announce $19 Billion All-Stock Merger of Equals
Chart Industries (GTLS, Financials) and Flowserve (FLS, Financials) will merge in an all-stock deal to form a combined industrial process technology company with an enterprise value of approximately $19 billion, the companies said Wednesday. Under the agreement, Chart shareholders will receive 3.165 Flowserve shares for each Chart share owned, resulting in 53.5% ownership by Chart investors in the new entity.
Warning! GuruFocus has detected 4 Warning Signs with GTLS.
The new company will combine Chart's compression, thermal, and cryogenic systems with Flowserve's pump, valve, and seal portfolio, aiming to deliver integrated solutions with strong digital overlays. Revenue from aftermarket services is projected to reach $3.7 billion annually, driven by a 5.5 million-unit installed base.
Chart CEO Jill Evanko will become Chair of the new board, while Flowserve CEO Scott Rowe will lead the combined company as Chief Executive. Headquarters will be in Dallas, with continued presence in Atlanta and Houston. The transaction is expected to close in Q4 2025 pending shareholder and regulatory approvals.
The companies expect $300 million in annual cost synergies within three years and incremental revenue growth of 2%. Adjusted earnings per share are projected to be accretive in year one. The combined entity plans to maintain an investment-grade balance sheet and Flowserve's historical dividend levels.
This article first appeared on GuruFocus.
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