Chart Industries signed a definitive agreement to acquire the pressure equipment manufacturer for cryogenic and energy and petrochemical markets, VRV and its units.
In connection with the acquisition, Chart has agreed to pay €125 million ($147 million), which will be funded by a combination of Chart’s available cash on hand and debt.
Debt financing will be arranged under its current credit facility or another financing alternative, with Chart assuming the outstanding indebtedness of VRV (approximately €70 million or $83 million).
The acquisition is expected to add annual net sales of $115 million in 2019, achieve significant cost synergies related to operational efficiencies and sourcing, and be EPS accretive in the first full year of ownership.
Chart said the VRV acquisition builds on its capital allocation strategy, focusing on core cryogenic and energy technologies.
To support this strategic acquisition as well as Chart’s focus on geographic expansion outside of North America, Chart is realigning our segmentation and naming a global commercial team.
Effective immediately, Chart’s 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.
Chart expects the changes will provide improved transparency of business results and facilitate its growth strategies through the collaboration of global and regional approaches.
The company is in the final stages of the review with further details to be unveiled soon, Chart’s statement reads.