Chart Industries, Inc.’s $410 million acquisition of Hudson Products Corporation


Chart Industries, Inc. has entered into a definitive agreement to acquire Hudson Products Corporation for $410 million in cash.

Founded in 1939, Hudson is a trusted 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. Hudson is expected to generate net sales of approximately $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 $7 million are expected to be realized 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.

Hudson is majority-owned by funds managed by Riverstone Holdings LLC.

Credit Suisse served as exclusive financial advisor and Jones Day served as legal advisor to Chart with a team led by Patrick Leddy.

Goldman Sachs & Co. LLC served as exclusive financial advisor and Latham & Watkins LLP served as legal advisor to Hudson.

Involved fees earner: Patrick Leddy – Jones Day;

Law Firms: Jones Day;

Clients: Chart Industries, Inc.;

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Author: Ambrogio Visconti