Chart Industries, Inc. (NYSE: GTLS), signed a definitive agreement to acquire Howden, a Renfrew, Scotland, U.K. based provider of mission critical air and gas handling products and services, from affiliates of KPS Capital Partners, LP.
The purchase price is $4.4 billion and will be funded through a combination of cash and shares of a newly created class of preferred stock. The acquisition is subject to the receipt of certain regulatory approvals and the satisfaction of other customary closing conditions and is expected to close in the first half of 2023.
The acquisition will result in estimated combined revenue of approximately $3.4 billion based on the trailing twelve months as of August 31, 2022. The purchase price represents 12.9x Howden’s adjusted EBITDA for the 12 months ended August 31, 2022, or 8.5x including estimated annual cost synergies of $175 million to be achieved in the first 12 months of ownership ($250 million annual cost synergies by year three). In addition to cost opportunities, Chart has identified significant commercial synergies that are expected to reach $350 million annually by year three.
Led by Ross Shuster, CEO, Howden is a global provider of mission critical air and gas handling products providing service and support to customers around the world in highly diversified end markets and geographies. Howden manufactures highly engineered fans, compressors, rotary heat exchangers, steam turbines, and other air and gas handling products, services, and solutions.
Led by Jill Evanko, CEO and President, Chart Industries is a independent global manufacturer of equipment servicing multiple applications in the Energy and Industrial Gas markets. The company provides technology, equipment and services related to liquefied natural gas, hydrogen, biogas and CO2 Capture amongst other applications. Chart has over 25 global manufacturing locations from the United States to China, Australia, India, Europe and South America.
FinSMEs
10/11/2022