Chart Industries, Inc. has announced it will acquire the Industrial Air-X-Changers business of Harsco Corporation.
The $592m acquisition of Harsco AXC is a significant step for Chart in executing its strategy to focus on cryogenic expertise for the industrial gas and energy spaces.
Harsco AXC brings Chart access to the compression market for air cooled heat exchangers (ACHX), completing Chart’s full ACHX offering for both process and compression.
“This is a perfect match of two businesses with complementary strengths that together will generate more value for our customers and even stronger financial results,” said Jill Evanko, Chart’s President and CEO.
“We are excited to have such a strategic business and talented team in the air-cooled heat exchanger space join the rest of our great Chart team members and product offerings.”
Harsco AXC is expected to generate net sales of approximately $260m in full year 2019 and 23% EBITDA margin as a percentage of sales.
Upon closing, Harsco AXC will be immediately gross margin, operating margin, and EBITDA margin accretive to Chart. Subject to timing of close, the acquisition is expected to increase full year 2019 sales guidance to $1.41bn to $1.46bn.
Chart’s 2019 guidance assumes the Harsco AXC acquisition will close on 1st July (2019).