Chart Industries Inc. has announced the signing of a definitive agreement to acquire VRV s.p.a. and its subsidiaries (VRV).
VRV is a diversified multinational corporation with highly automated, purpose-built facilities for the design and manufacture of pressure equipment serving the cryogenic and energy and petrochemical end markets.
In connection with the acquisition, Chart has agreed to pay €125 million, which will be funded by a combination of Chart’s available cash on hand and debt under its current credit facility or another financing alternative, and assume the outstanding indebtedness of VRV (approximately €70 million).
The acquisition is expected to add annual net sales of US$115 million in 2019 and be EPS accretive in the first full year of ownership.
To support this strategic acquisition as well as Chart’s expanded focus on geographic expansion outside of North America, Chart is realigning its segmentation and naming a global commercial team. Effective immediately, their results will be reported in Energy & Chemicals, Distribution & Storage Western Hemisphere (the Americas), Distribution & Storage Eastern Hemisphere (Europe, Middle East, and Asia including China) and BioMedical.
Additionally, further modifications to Chart’s segment reporting may be implemented depending upon the results of the previously disclosed BioMedical strategic review process. Chart is in the final stages of the review and will provide an update upon completion.
The transaction is subject to customary closing conditions. Credit Suisse served as exclusive financial advisor and Winston & Strawn LLP and NCTM served as legal advisors to Chart.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/28092018/chart-industries-to-acquire-vrv-group/