Chart Industries, Inc. has completed its takeover of Hudson Products Corporation in a deal worth $410m.
The signing of a definitive agreement was previously announced on 30th June.
Founded in 1939, Hudson is a trusted leader in heat transfer solutions with an array of strong brands and products in refining, petrochemical, natural gas, power and other industrial and commercial end markets.
The North American-based company specialises in air-cooled heat exchangers (ACHXs) and axial flow cooling fans. It’s installed base of over 20,000 ACHXs and 250,000 fans globally provides stable aftermarket revenue streams, which account for approximately 37% of Hudson’s total net sales.
Hudson complements Chart’s Energy & Chemicals (E&C) segment with the addition of its Fin-Fan® brand and other ACHXs which broaden E&C’s end market diversity from primarily LNG, industrial and natural gas to include HVAC, petrochemical and power generation. The addition of Hudson’s fans business, known by the Tuf-Lite® brand, is a new product category for Chart, and allows E&C to offer a broader technology solution for our customers.
Chart’s CEO, Bill Johnson, commented, “Hudson and Chart’s innovative, engineering focused cultures will work well together to continue to develop full service solutions. This acquisition expands our E&C LifeCycle aftermarket presence from $50m to $125m in annual revenue.”
Hudson is expected to generate net sales of approximately $205m in 2017. The transaction was funded by Chart’s available cash on hand and debt under its current credit facility. Management expects the transaction to be accretive to adjusted earnings per share in the first full year after closing. Annual cost synergies of approximately $7m are expected to be realized within two years after closing. Hudson will report through Chart’s E&C segment.