Chart Industries has announced that it has entered into a definitive agreement to acquire Hudson Products Corporation, which is majority-owned by funds managed by Riverstone Holdings LLC for US$410 million in cash.
Hudson Products, founded in 1939, is a leader in heat transfer solutions with an array of strong brands and products used in refining, petrochemical, natural gas, power, and other industrial and commercial end-markets. The company holds a leadership position in North America in air-cooled heat exchangers (ACHXs) and a global leadership position in axial flow cooling fans. The company has an installed base of over 20 000 ACHXs and 200 000 fans globally and accounts for approximately 37% of Hudson's total net sales. In 2017, Hudson is forecasted to generate net sales of approximately US$205 million.
Chart Industries' President and CEO, Bill Johnson, commented,"Hudson is a proven, high performing business with an impressive set of products, customers, processes, and people, all of which we see as being highly synergistic and consistent with our strategic growth initiatives. We welcome Hudson employees to Chart and look forward to jointly creating valuable solutions for our customers. We see the acquisition and the expected synergies as enhancing shareholder value as we move forward."
Chart Industries will be funding the transaction with cash available on hand and debt under its current credit facility. The company expects the transaction to close during 3Q17, subject to customary closing conditions, including receipt of required regulatory approvals. Chart Industries expects the transaction to be accretive to adjusted earnings per share in the first full year after closing, while annual cost synergies of approximately US$7 million are expected to be realised within two years after closing.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/13072017/chart-industries-acquires-hudson-products/