Chart and Flowserve to merge in $19bn deal

US industrial equipment businesses Chart Industries and Flowserve are to merge in a major $19bn deal that aims to establish a scaled industrial process technology business with a range of ‘flow and thermal’ solutions. The deal is expected to close in Q4 this year.

Under the transaction, billed as a merger of equals, Chart will be the majority shareholder (53.5%), with 46.5% owned by Flowserve. The combined company – whose name will be announced at a later date – will be headquartered in Dallas, with presence maintained in Atlanta and Houston.

The merger pools Flowserve’s expertise in cryogenic valves and hydrogen fuelling systems with Chart’s experience in handling gases and liquids in the clean energy and industrial gas markets, including a wide range of end markets such as LNG, nuclear, and chemicals.

Source: Chart Industries

Both parties have identified $300m of annual cost savings “with revenue upside” in the region of $8.8bn.

In terms of energy sector potential, both companies expect to identify opportunities from electrification, the growth of nuclear, and global LNG capacity and utilisation, as well as the reshoring of critical manufacturing.

The 12-member board will see Jill Evanko serve as Chair and Scott Rowe as CEO.

Rowe said, “Chart and Flowserve have worked together for many years, even before Jill and I became CEOs of our respective companies, but since then we’ve grown that partnership – so there’s been a lot of ‘pull through’ on our valves into the Chart system, and a lot of dialogue.

Alongside cost savings, technology is a key focus. A ‘3D’ strategy announced today will seek to ‘diversify, decarbonise and digitise’ and capitalise on the data centre boom and on AI growth.

The deal also strengthens both companies in the aftermarket services sector in terms of supplying spare parts and equipment upgrades.

A break-up fee of 3.25% has been set, based on respective market capitalisations.