With an installed base of more than 5.5 million assets in over 50 countries, the deal brings together Chart’s expertise in process technologies across compression, thermal, cryogenic and specialty solutions and Flowserve’s capabilities in flow management including pumps.
Under the agreement, which has been unanimously approved by the board of directors of each company, Chart shareholders will receive 3.165 shares of Flowserve common stock for each share of Chart common stock owned. Following the close of the transaction, Chart shareholders will own approximately 53.5% and Flowserve shareholders 46.5% of the combined company, on a fully diluted basis.
“Combining Chart and Flowserve creates a comprehensive solutions platform, with the financial strength and resilience to continue driving growth and long-term value,” said Jill Evanko, president and CEO of Chart. “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.”
“The merger will create a differentiated leader with the scale and resilience to meet the significant demand for comprehensive industrial process technologies and services,” said Scott Rowe, president and CEO of Flowserve. “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.”
The combined company’s board will comprise 12 directors, six of whom will be from Chart and six from Flowserve. Evanko will serve as the Chair of the combined company’s Board of Directors, while Rowe will serve as CEO of the combined company.
Following the closing of the transaction, the combined company will have its headquarters in Dallas, Texas and assume a new name and brand.
