Chart Industries Inc. has announced that it has entered into a definitive agreement to acquire Hudson Products Corporation for US$410 million in cash.
Founded in 1939, Hudson 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. Hudson is a North American leader in air-cooled heat exchangers (ACHXs) and a global leader in axial flow cooling fans (Fans). Its installed base of over 20 000 ACHXs and 200 000 Fans globally provides stable aftermarket revenue streams, which account for approximately 37% of Hudson’s total net sales.
Chart’s President and Chief Executive Officer, 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.”
Hudson’s Chief Executive Officer, Grady Walker, commented, “We are thrilled to be joining the Chart team with whom we share a passion for innovation and problem solving. The combination will enhance the breadth of our product and service offerings and will greatly enhance our ability to offer valuable solutions to our customers worldwide.”
Hudson is expected to generate net sales of approximately US$205 million in 2017. The transaction will be funded by Chart’s available cash on hand and debt under its current credit facility. Management expects the transaction to be accretive to adjusted earnings per share in the first full year after closing. Annual cost synergies of approximately US$7 million are expected to be realised within two years after closing.
The transaction is subject to customary closing conditions, including receipt of required regulatory approvals and is expected to close during the third quarter 2017.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/21092017/chart-to-acquire-hudson-products/