Chart Industries has announced today that it has entered into a definitive agreement to acquire AirSep Corporation for $170 million in cash and up to $10 million in assumed debt.
The transaction also includes senior management retention arrangements to ensure business continuity.
AirSep, a privately held company based in Amherst, New York, is a leading manufacturer of oxygen generating systems for medical and industrial applications. The company designs and manufactures stationary and portable oxygen concentrators for medical use, such as the ultra lightweight Focus(TM), FreeStyle(TM) and VisionAire(TM).
Additionally, AirSep is a leader in on-site air separation oxygen generation systems for industrial applications. On-site generation products range from standard generators to custom-built large-scale industrial Pressure Swing Adsorption (“PSA”) or Vacuum Pressure Swing Adsorption (“VPSA”) systems that can produce 100 tons of oxygen per day.
The transaction is expected to be completed in the third quarter of 2012 after satisfaction of certain closing conditions, including expiration of the Hart-Scott-Rodino (“HSR”) waiting period. AirSep is expected to add approximately $130 million in annual revenues to Chart’s BioMedical segment with improved gross margin as compared to Chart’s average consolidated gross margin, excluding acquisition-related costs. Revenue and margins are expected to grow in future periods for this business, and Chart expects the acquisition to be accretive to future earnings.
“The acquisition of AirSep is an excellent fit into Chart’s overall gas processing business,” stated Sam Thomas, Chairman, CEO and President of Chart Industries. “It strengthens our BioMedical Group’s oxygen concentrator business and provides a growth platform for on-site air separation gas generation. The acquisition also represents an attractive and stable complement to our large and rapidly growing energy business, including LNG liquefaction and transportation opportunities.”
Steve Shaw, President of Chart’s BioMedical Group, added, “The AirSep product lines and distribution network bring new technology to our customers and extend our non-delivery modalities across the globe. We are very pleased to add a talented and proven management team and staff to our BioMedical Group, and we look forward to offering a broader set of solutions to our customers.”
Ravi Bansal, Chairman and Chief Executive Officer of AirSep, commented, “Our merger into Chart BioMedical will allow us to grow our business on a broader scale and continue to provide high quality and innovative products. We are excited to take our capabilities to current and new customers across the globe, leveraging Chart’s experience and relationships.”