Chart Industries and Flowserve agree to $19b all-stock merger
Two American industrial equipment manufacturers have announced plans to merge in a deal that will create a global leader in process technologies valued at approximately $19 billion.
Chart Industries, which specialises in gas and liquid handling equipment, and Flowserve Corporation, a maker of valves and industrial pumps, said the all-stock transaction would combine their complementary operations to serve customers across the full lifecycle of industrial processes.
The merger comes as demand for industrial equipment surges, driven by growing investments in artificial intelligence and modern data centres that require sophisticated cooling and fluid handling systems. The combined entity will have an installed base of more than 5.5 million assets across 50 countries.
Under the agreement, Chart shareholders will receive 3.165 shares of Flowserve common stock for each Chart share held. Following completion, Chart shareholders will own approximately 53.5% of the merged company, with Flowserve shareholders holding the remainder.
The deal is expected to generate annual cost savings of around $300 million within three years, primarily through procurement efficiencies and organisational streamlining. The companies also anticipate revenue synergies representing at least 2% additional growth.
Flowserve CEO Scott Rowe will lead the combined company, whilst Chart's CEO Jill Evanko, will serve as board chair. The new entity will operate under a fresh name and brand to be announced upon completion.
BTIG analyst Gregory Lewis noted the focus on creating "an aftermarket powerhouse", with aftermarket services comprising approximately 42% of the combined entity's revenue at around $3.7 billion annually.
The transaction, which requires shareholder and regulatory approval, is expected to close in the fourth quarter of 2025.
