Chart Industries and Flowserve in $19bn merger

August 2025 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

August 2025 Issue

In early June, Chart Industries, Inc. and Flowserve Corporation announced they had agreed to merge in an all-stock transaction, forming a differentiated leader in industrial process technologies.

The combined company is expected to have an enterprise value of approximately $19bn, based on the exchange ratio and the closing share prices of Chart and Flowserve as of 3 June 2025, the day before the announcement. Prior to the deal, Chart had a market capitalisation of $7.26bn, according to LSEG, while Flowserve was valued at $6.6bn.

Chart Industries, a specialist in gas and liquid handling equipment, and Flowserve Corporation, a manufacturer of valves and industrial pumps, stated that the merger would unite their complementary operations to serve customers across the entire lifecycle of industrial processes. The transaction is expected to enable the combined entity to capitalise on strong demand for industrial equipment and aftermarket services.

Under the terms of the agreement, Chart shareholders will receive 3.165 shares of Flowserve common stock for each Chart share they hold. Upon completion, Chart shareholders will own approximately 53.5 percent of the merged company, with Flowserve shareholders owning the remainder.

The transaction is anticipated to close in the fourth quarter of 2025, subject to approval by shareholders of both companies, regulatory clearance and the fulfilment of other customary closing conditions.

The companies project annual cost savings of around $300m within three years, primarily through procurement efficiencies and organisational streamlining. They also expect revenue synergies to contribute at least an additional 2 percent in growth.

With an installed base of more than 5.5 million assets across over 50 countries, the combined company will support customers from process design through to aftermarket services. On a trailing 12-month basis as of the end of Q1 2025, the combined entity generated approximately $8.8bn in net revenue, drawn from diverse, high-growth end markets. This includes around $3.7bn in aftermarket services revenue, accounting for roughly 42 percent of total revenue. In May, Chart reported a 5.3 percent increase in first-quarter revenue and indicated it would consider acquisitions focused on repair and services, among other areas.

“Combining Chart and Flowserve creates a comprehensive solutions platform, with the financial strength and resilience to continue driving growth and long-term value,” said Jillian C. Evanko, president and chief executive of Chart. “Together we will provide a complete system of capabilities from front-end engineering design to mission critical equipment through aftermarket and servicing, delivering high-quality, value-added solutions to an expanded, global customer base. With robust cash flow, meaningful synergies, and greater aftermarket growth opportunities, the combined company will be ideally positioned to deliver superior and lasting value to its shareholders.”

“The merger will create a differentiated leader with the scale and resilience to meet the significant demand for comprehensive industrial process technologies and services,” said Scott Rowe, president and chief executive of Flowserve. “Chart’s and Flowserve’s highly complementary businesses will strengthen our ability to meet our customers’ needs, empower innovation and drive long-term, sustainable growth. The combined company will operate across diversified end markets with further exposure to premium, high-growth areas and a substantial aftermarket franchise – resulting in increased commercial opportunities. I am confident that together, we will capitalize on long-term value creation for our customers, partners, shareholders and combined global team.”

Following the merger, the combined company will be headquartered in Dallas, Texas, and will retain a presence in Atlanta and Houston, supported by a global footprint spanning more than 50 countries. A new name and brand will be adopted after the transaction closes. The board of directors will consist of 12 members, with six from each company. Ms Evanko will serve as chair of the board, Mr Rowe will become chief executive officer and John Garrison will act as lead independent director.

Richard Summerfield