Chart Industries (GTLS) and Flowserve to Merge in $19 Billion All-Stock Deal

On Wednesday, Chart Industries Inc. (NYSE:GTLS) and Flowserve Corporation (NYSE:FLS) announced that they have agreed to an all-stock merger of equals, forming a combined entity valued at approximately $19 billion. The transaction, unanimously approved by both boards, is expected to close in the fourth quarter of 2025, subject to shareholder and regulatory approvals.

Under the terms, Chart shareholders will receive 3.165 Flowserve shares for each Chart Industries share they hold, resulting in Chart shareholders owning approximately 53.5% of the merged company, and Flowserve shareholders owning the remaining 46.5%. The new entity will have a fresh name and brand following the closing, with its headquarters in Dallas and a continued operational presence in Atlanta and Houston.

A worker inspecting a chemical process control system at a general industrial facility.

This strategic combination brings together Flowserve’s strength in fluid motion and control systems with Chart’s expertise in process technologies for gas and liquid molecules. The merged company will cater to a broad range of industries, including industrial gas, water, data centers, chemicals, and energy, and will operate across more than 50 countries.

Regarding the management roles, Flowserve CEO Scott Rowe will lead the business as CEO, while Chart CEO Jill Evanko will chair the board. The 12-member board will be equally split between the two companies.

Following the merger, cost synergies of approximately $300 million are projected within three years, driven by procurement savings, operational efficiencies, and optimization of corporate costs. Additional revenue growth opportunities are expected to emerge over time, particularly from cross-selling and aftermarket services, which already account for 42% of combined revenue.

On a combined basis, Chart and Flowserve generated net revenue of approximately $8.8 billion and $1.8 billion of cash flow over the 12 months ended March 31, 2025. The transaction is expected to be accretive to adjusted EPS within the first year post-close and will maintain a quarterly dividend policy consistent with Flowserve’s historical payouts.

Chart Industries Inc. is a global leader in the design, engineering, and manufacturing of process technologies and equipment used across the gas and liquid molecule supply chain. Its solutions support the production, storage, distribution, and end-use of atmospheric, hydrocarbon, and industrial gases, serving industries such as energy, industrial gas, and medical.

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Disclosure: None.