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ATLANTA & DALLAS - Chart Industries, Inc. (NYSE: GTLS) and Flowserve Corporation (NYSE: FLS) have announced their agreement to merge in an all-stock deal, which is expected to create an enterprise valued at approximately $19 billion. The merger, unanimously approved by both companies’ boards, is anticipated to close in the fourth quarter of 2025, subject to shareholder and regulatory approvals.
The combined entity aims to establish a robust platform for flow and thermal management, serving the full customer lifecycle with an emphasis on process design and systems capabilities. The merger is expected to enhance the companies’ market resilience and diversification, with a strong focus on high-growth end markets. Flowserve brings operational strength to the merger, with a current ratio of 2.07 indicating strong liquidity and a moderate debt level, as highlighted in InvestingPro’s comprehensive analysis (unlock 7+ additional ProTips with a subscription).
The companies forecast annual cost synergies of about $300 million within three years post-merger, primarily from procurement savings and efficiencies. They also project incremental revenue growth of 2% on their combined revenue over time. This growth target appears achievable given Flowserve’s current revenue growth of 4.2% and projected 6% growth for FY2025, according to InvestingPro data. The merger is expected to be accretive to the combined adjusted earnings per share (EPS) in the first year, building on Flowserve’s current EPS of $2.14.
Chart shareholders will receive 3.165 shares of Flowserve common stock for each share of Chart common stock owned, resulting in Chart shareholders owning approximately 53.5% and Flowserve shareholders owning about 46.5% of the combined company. The combined company, which will assume a new name post-merger, will be headquartered in Dallas, TX, with a presence in Atlanta and Houston. Notably, Flowserve has demonstrated strong financial stewardship, maintaining dividend payments for 19 consecutive years with a current yield of 1.66%.
Jill Evanko, President and CEO of Chart, highlighted the merger’s potential to deliver high-quality solutions and greater aftermarket growth opportunities. Scott Rowe, President and CEO of Flowserve, emphasized the combined company’s resilience and capacity to meet customer needs across diversified markets.
Upon closing, the combined company’s Board will be composed of 12 directors, equally split between Chart and Flowserve. Evanko will serve as the Chair, Rowe will become the CEO, and John Garrison will be the Lead Independent Director.
The transaction is poised to expand the aftermarket franchise, with the combined company expecting to drive aftermarket revenues to approximately $3.7 billion annually. The companies have committed to maintaining an investment-grade balance sheet and robust cash flows to support growth, deleveraging, and shareholder dividends.
The information for this article is based on a press release statement.
In other recent news, Flowserve Corporation reported its first-quarter 2025 earnings, exceeding analyst expectations with an earnings per share of $0.72 against the forecasted $0.60. The company’s revenue reached $1.14 billion, surpassing the anticipated $1.11 billion. Additionally, Flowserve announced the re-election of nine directors, with John L. Garrison stepping in as the new Independent Chairman. Ross B. Shuster, CEO of Copeland, also joined the board as a new director. During the annual meeting, shareholders approved executive compensation and the ratification of PricewaterhouseCoopers LLP as the independent auditor for 2025. However, a proposal to eliminate the one-year holding period for calling a special shareholder meeting was rejected. Flowserve declared a quarterly cash dividend of $0.21 per share, payable on July 11, 2025. The company continues to focus on strategic growth, including opportunities in decarbonization and the nuclear market.
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