Chart Industries has announced a definitive agreement to sell the company to First Reserve, the leading private equity firm specialising in the energy industry.
According to the terms of the deal, First Reserve Fund X, LP, an affiliate of First Reserve Corporation, will acquire all outstanding shares for a cash purchase price of $65.74 per share, less Chart’s transaction expenses.
The total transaction value is approximately $460 million.
Samuel F. Thomas, chief executive officer and president of Chart Industries, said: “This strategic transaction with First Reserve provides good value to our existing stockholders.
“It will benefit our customers, employees and suppliers as we continue to grow our existing businesses and capitalise on the rapidly growing natural gas processing markets of LNG, Natural Gas Liquids (NGL), Ethylene and Gas to Liquids (GTL).”
William E. Macaulay, chairman and chief executive officer of First Reserve, added: “Chart Industries fits our company’s focus on diversified energy investments.
“We’re excited to add this company to our portfolio and look forward to working with Chart’s management team to realise the mutual benefits of this deal.”
The transaction is expected to close upon First Reserve's purchase of over 90% of Chart’s stock in a private transaction from a small group of Chart’s stockholders, followed immediately by a merger in which the same per share price will be paid to Chart’s remaining stockholders.
The transaction is expected to close by the end of October 2005, assuming satisfaction of customary closing conditions.
///First Reserve Corporation
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