2025-06-04 11:52Transaction Overview - Chart Industries and Flowserve Corporation will combine in an all-stock merger of equals, with an enterprise value of approximately $19 billion[18] - Chart shareholders will receive 3.165 shares of Flowserve common stock for each share of Chart common stock owned[18] - Pro-forma ownership will be 53.5% for Chart shareholders and 46.5% for Flowserve shareholders on a fully diluted basis[18] - The transaction is expected to close in Q4 2025, subject to shareholder and regulatory approvals[18] Financial Highlights - The combined company's revenue is $8.8 billion, with adjusted EBITDA of $1.9 billion and an adjusted EBITDA margin of 22%[20] - The combined company expects approximately $300 million in annual cost synergies within three years following the transaction close[15, 18, 45] - The combined company anticipates revenue synergies over time representing an incremental 2% growth on the combined revenue[18, 45] - Expected leverage ratio at close of 20x net debt to combined Adjusted EBITDA[18] Market and Strategy - The combined company will have a diversified end market exposure, including LNG (34%), Process Industries (25%), Chemical (12%), Power Generation (7%), Hydrogen, Nuclear & Helium (7%), and Specialty Markets and Water (6%)[26] - The combined company will have a significant aftermarket opportunity of approximately $3.7 billion annually[24, 38] - The combination would have reduced historical revenue volatility by approximately 380bps[24]