(RTTNews) - Chart Industries, Inc. (GTLS), Wednesday announced an agreement to merge with Flowserve Corp. (FLS), creating a combined entity with an expected enterprise value of approximately $19 billion.
Under the all-stock deal, Chart shareholders will receive 3.165 shares of Flowserve common stock for each share of Chart common stock owned at the end of the transaction.
The new entity, majorly owned by Chart shareholders, would create a comprehensive solutions platform, with the financial strength and resilience to continue driving growth and long-term value, the company noted.
The combined entity is expected to generate approximately $300 million of annual cost synergies within three years of the closing of the transaction. It is expected to be meaningfully accretive to the combined company's adjusted earnings per share in the first year following closing.
As per the terms of the deal, the combined company will have its headquarters in Dallas, TX, with Jill Evanko serving as the Chair of the combined company's Board of Directors, and Scott Rowe serving as Chief Executive Officer of the combined company.
The transaction is expected to close in the fourth quarter of 2025.
In the pre-market hours, GTLS is trading at $162.10, up 0.38 percent on the New York Stock Exchange.
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