Process equipment maker Chart Industries and fluid control giant Flowserve on Wednesday announced plans to merge into what officials said would be “a differentiated leader in industrial process technologies.”
The all-stock deal for a “merger of equals” would establish a company with an estimated enterprise value of $19 billion, officials said. The merger would combine Chart’s compression, thermal, cryogenic and specialty solutions with Flowserve’s flow management capabilities, as well as address the entire customer lifecycle from design through aftermarket support.
“Together we will provide a complete system of capabilities from front-end engineering design to mission critical equipment through aftermarket and servicing, delivering high-quality, value-added solutions to an expanded, global customer base,” Chart President and CEO Jill Evanko said in the announcement.
Under the deal, Chart shareholders would receive 3.165 shares of Flowserve common stock for each share of Chart stock. Once completed, current Chart shareholders would own about 53.5% of the overall company.
Flowserve President and CEO Scott Rowe will be the chief executive officer of the combined company, while Evanko will chair its board, which will consist of six directors from each founding company.
“Chart’s and Flowserve’s highly complementary businesses will strengthen our ability to meet our customers’ needs, empower innovation and drive long-term, sustainable growth,” Rowe said.
The deal is expected to close in the fourth quarter of this year, subject to shareholder approval, regulator clearance and other closing conditions. It has already been approved unanimously by the boards of Chart and Flowserve.
