Cravath Swaine & Moore and Winston & Strawn are advising on Chart Industries’ $19bn all-stock merger of equals with Flowserve, in a deal that will create a leader in gas and liquid technologies.
A Cravath team led by M&A partners Daniel Cerqueira and George Schoen is acting for Flowserve on the deal. The firm has advised the Irving, Texas-based company, which is one of the largest suppliers of industrial machinery to the oil and gas industry, on past matters, including representing the underwriters in connection with its $500m registered senior notes offering in 2020.
Meanwhile, Winston & Strawn is guiding Chart on the deal, with the team led by M&A practice chair Matt Stevens and M&A partners Paul Huddle and Justin Hoffman. In 2022, the trio were also part of a Winston & Strawn team that guided Chart’s $4.4bn acquisition of UK-based industrial equipment maker Howden from private equity firm KPS Capital Partners. Chart is a gas and liquid molecule processing equipment manufacturer and technology provider based in Ball Ground, Georgia.
The Flowserve deal will create a combined company with an expected enterprise value of around $19bn. Chart shareholders will receive 3.165 shares of Flowserve’s common stock for each share owned, the companies said.
Chart shareholders will hold around 53.5% of the combined company, while Flowserve shareholders will hold the rest.
The deal is expected to generate around $300m in annual cost savings within three years of the deal closing.
Chart CEO Jill Evanko said the deal “creates a comprehensive solutions platform, with the financial strength and resilience to continue driving growth and long-term value”.
She added: “Together we will provide a complete system of capabilities from front-end engineering design to mission-critical equipment through aftermarket and servicing, delivering solutions to an expanded, global customer base.”
Evanko will serve as the chair of the new company’s board, while Flowserve’s CEO Scott Rowe will act as chief executive officer.
The deal is expected to close in the fourth quarter of 2025. Wells Fargo is serving as financial advisor to Chart on the deal, while Guggenheim Securities is serving as financial advisor to Flowserve.
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