Skip to main content

Chart completes acquisition of Howden

Published by , Senior Editor
Hydrocarbon Engineering,

Chart Industries Inc. has completed its acquisition of Howden from affiliates of KPS Capital Partners LP (KPS).

The strategic combination of Chart and Howden expands the company’s offering of products and solutions across the Nexus of Clean™ - clean power, clean water, clean food and clean industrials. The combination also provides access to new specialty products and ESG-linked end markets such as nuclear, energy recovery and electrification.

In a statement, Chart said that the complementary nature of the equipment and solution portfolios results in a differentiated offering across stationary and rotating equipment and is further differentiated by the additional 750 Howden engineers coming with the acquisition, doubling Chart’s global engineering team to over 1500.

Chart paid a purchase price of approximately US$4.4 billion in cash, before customary purchase price adjustments. Chart funded the purchase price and the payment of acquisition-related expenses through a combination of cash on hand, the proceeds from previously consummated debt and equity financings and the proceeds from a tranche of term loans that closed concurrently with the acquisition. As a result of Chart’s cash on hand and the debt and equity financings, the purchase price was paid solely in cash and no preferred stock was issued (to KPS or otherwise).

“We are excited to welcome the Howden team to the Chart family and look forward to the combined business executing on record momentum and well-defined synergies,” stated Jill Evanko, CEO and President of Chart. “Since we announced the combination in November 2022, Chart has received numerous inbounds from customers that see the combined benefits we can offer.”

Through the acquisition of Howden, Chart has gained access to new customers and commercial opportunities, increasing its geographic footprint to over 35 countries. This geographic footprint allows for increased commercial and manufacturing capabilities as well as the ability to bid on projects regionally that were not previously accessible. As a result, Chart is on track to meet or exceed its previously announced targets for US$175 million of annualised cost synergies and US$150 million of commercial synergies in the first 12 months of ownership.

Aftermarket, service and repair will represent approximately 30% of the combined organisation with approximately 42% gross margin as a percent of sales. The increased global reach, coupled with two large existing installed bases, will result in less business cyclicality. Chart will also leverage Howden’s digital offerings of Uptime and Ventsim across its global installed base.

The new Chart executive management team will include a balance of Chart and legacy Howden executives.

Read the article online at:

You might also like


Embed article link: (copy the HTML code below):


This article has been tagged under the following:

Downstream news