Flowserve, Chart Industries To Merge In All-Stock Deal, Creating $19B Equipment Giant

The combined company would be 53.5% owned by Chart shareholders and 46.5% by Flowserve shareholders on a fully diluted basis.

Chart Industries (GTLS) and Flowserve (FLS) announced on Wednesday that they plan to merge in an all-stock deal, creating a $19 billion industrial equipment provider.

Shares of Chart Industries rose more than 5% in pre-market trade, while Flowserve declined by over 2.6%.

Flowserve, a major supplier of pumps, valves, and seals for industries such as chemicals and water treatment, had a market capitalization of about $6.6 billion as of Tuesday. Chart Industries, which manufactures equipment for handling gas and liquid molecules across energy, industrial gas, and space applications, was valued at roughly $7.2 billion. 

The combined company is forecast to have an enterprise value of $19 billion, including assumed debt.

Chart shareholders would receive 3.165 shares of Flowserve for every Chart share they own. The combined company would be 53.5% owned by Chart shareholders and 46.5% by Flowserve shareholders on a fully diluted basis.

Flowserve CEO Scott Rowe will lead the new entity, while Chart CEO Jill Evanko will assume the role of chair of the board. The combined company’s board will comprise 12 directors, six of whom will be from Chart and six from Flowserve.

“Combining Chart and Flowserve creates a comprehensive solutions platform with the financial strength and operational resilience to drive sustained growth,” said Evanko.

She said the deal is expected to deliver significant long-term benefits, including strong cash flow, operational synergies, and a larger aftermarket opportunity. “The combined company will be well-positioned to deliver durable value to shareholders,” she added.

The companies said the combined entity will address the full customer lifecycle from process design through aftermarket support, allowing it to better compete with larger rivals such as Dover (DOV) and Ingersoll Rand (IR).

It said that the key advantage of the deal lies in the expanded aftermarket business. With a combined installed base of over 5.5 million assets, the company anticipates generating approximately 42% of its revenue from services and recurring parts sales. 

Executives expect to grow that base further through the companies’ broader global footprint and enhanced service offerings.

The companies also project approximately $300 million in annual cost savings within three years. These would come from supply chain efficiencies, overlapping facility closures, and the elimination of duplicate public company costs. 

Commercial revenue synergies are also anticipated to lift overall sales by at least 2%.

Management also said it expects to maintain Flowserve’s dividend payout level while gradually reducing leverage and enhancing long-term profitability. 

Chart’s stock has fallen more than 16% this year but gained around 2% over the past 12 months. Meanwhile, Flowserve’s stock has fallen more than 12% this year and gained 1.5% over the past 12 months.

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