Chart Industries and Flowserve Announce Landmark Merger

In a transformative move within the industrial process technologies sector, Chart Industries, Inc. (NYSE: GTLS) and Flowserve Corporation (NYSE: FLS) have announced a definitive agreement to merge in an all-stock transaction. This merger of equals is set to create a global leader with an enterprise value of approximately $19 billion, reshaping the competitive landscape.

Strategic Synergies and Market Impact

The combined entity will leverage an extensive installed base of over 5.5 million assets across more than 50 countries, offering a comprehensive suite of services that cover the entire customer lifecycle. This includes everything from initial process design to robust aftermarket support. The merger is expected to enhance predictability, diversification, and resilience through market cycles, with significant exposure to premium, high-growth end markets.

On a combined last twelve months (LTM) basis as of the end of Q1 2025, the merged company is projected to generate net revenue of approximately $8.8 billion. Notably, aftermarket services are anticipated to contribute around $3.7 billion, or roughly 42% of the combined revenue, underscoring the strength of the aftermarket franchise.

Shareholder Considerations

Under the terms of the merger, Chart shareholders will receive 3.165 shares of Flowserve common stock for each share of Chart common stock they own. Upon completion, Flowserve shareholders will own approximately 46.5% of the combined company. This strategic alignment is expected to unlock significant value for shareholders of both companies.

Regulatory and Legal Developments

The merger is currently under review, with regulatory bodies closely examining the transaction. Concurrently, Halper Sadeh LLC, an investor rights law firm, is investigating the merger on behalf of Chart shareholders. The firm is exploring potential violations of federal securities laws and breaches of fiduciary duties, seeking increased consideration and additional disclosures for shareholders.

Market Reaction

The announcement has stirred significant interest in the market, with analysts highlighting the potential for enhanced market positioning and operational efficiencies. Chart Industries’ close price as of May 29, 2025, stood at $156.86, with a 52-week high of $220.03 and a low of $101.6. The company’s market capitalization is approximately $7.26 billion, with a price-to-earnings ratio of 23.4021.

Conclusion

The merger between Chart Industries and Flowserve is poised to create a differentiated leader in industrial process technologies, offering a scaled, high-performance platform that serves the full customer lifecycle. As the transaction progresses, stakeholders will closely monitor developments, anticipating the strategic benefits and potential challenges that lie ahead.