Markets
AIT

Chart Industries Closes Divestment of CAIRE Medical Business

Chart Industries, Inc.GTLS recently concluded the divestment of its oxygen-related products business - CAIRE Medical - to NGK SPARK PLUG CO., LTD. for $133.5 million. Notably, the deal was announced on Oct 1.

For the deal, Credit Suisse CS acted as the exclusive financial advisor, with Winston & Strawn LLP being the legal advisor to Chart Industries.

The divestment of CAIRE Medical - a portion of the company's BioMedical segment - will allow it to focus more on its core cryogenic capabilities. However, the sale does not include part of the company's BioMedical segment, which is related to its cryogenic products and technological expertise (Cryobiological). Notably, Cryobiological will operate under the company's Distribution & Storage Western Hemisphere segment.

Earlier, the company completed the buyout of VRV S.r.l. and its subsidiaries. The acquisition is likely to be conducive to its Energy & Chemicals and Distribution & Storage businesses going forward. As a matter of fact, the company anticipates the deal to bolster its revenues by $120 million in the first year of ownership completion. The buyout is also anticipated to be accretive to the company's earnings per share performance and is likely to bring in significant cost synergies.

Price Performance

In the past year, the Zacks Rank #3 (Hold) company's shares have returned 30% against 16% decline recorded by the industry it belongs to.

Stocks to Consider

A couple of better-ranked stocks from the same industry are Luxfer Holdings PLC LXFR and Applied Industrial Technologies, Inc. AIT . While Luxfer Holdings sports a Zacks Rank #1 (Strong Buy), Applied Industrial Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Luxfer Holdings surpassed estimates thrice in the trailing four quarters, the average positive earnings surprise being 24.27%.

Applied Industrial Technologies outpaced estimates in each of the preceding four quarters, the average earnings surprise being 11.67%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Credit Suisse Group (CS): Free Stock Analysis Report

Chart Industries, Inc. (GTLS): Free Stock Analysis Report

Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report

Luxfer Holdings PLC (LXFR): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AIT CS GTLS LXFR

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More