Baker Hughes announced on Tuesday that it will acquire all outstanding shares of Chart’s common stock for $210 per share in cash, equivalent to a total enterprise value of $13.6 billion.
Also, Baker Hughes has secured fully committed bridge debt financing to fund the transaction, provided by Goldman Sachs Bank USA, Goldman Sachs Lending Partners, and Morgan Stanley Senior Funding, which is expected to be replaced with permanent debt financing prior to close.
The combination positions Baker Hughes to be a “technology leader that can provide engineering and technology expertise to meet the growing demand for lower-carbon, efficient energy and industrial solutions across attractive growth markets such as LNG, data centers, and new energy.”
Baker Hughes said that the boards of directors of both companies have each unanimously approved the transaction, and the Chart board has unanimously recommended that its shareholders approve the transaction.
The transaction remains subject to customary conditions, including approval by Chart shareholders, and the receipt of applicable regulatory approvals.
Baker Hughes and Chart expect to complete the transaction by mid-year 2026.
“This acquisition is a milestone for Baker Hughes and a testament to our strong financial execution and strategic focus,” CEO Lorenzo Simonelli said.
“We know Chart well, having worked alongside them on many critical energy infrastructure projects. Their products and services are highly complementary to our offerings and strongly aligned with our intent to deliver distinctive and efficient end-to-end lifecycle solutions for our customers across their most critical applications,” he said.
Flowserve deal terminated
Flowserve said in a separate statement that it has terminated its previously announced merger agreement with Chart.
The termination follows the Flowserve board of directors’ decision not to submit a revised offer to merge with Chart, after being notified that Chart’s board of directors had determined that a recent unsolicited acquisition proposal from Baker Hughes constituted a “superior proposal” under the terms of the merger agreement, the firm said.
In June, the two firms entered into a definitive agreement to combine in an all-stock merger of equals.
The combined company was expected to have an enterprise value of about $19 billion.
