July 1, 2019Chart Industries announced that it is buying Harsco's Air-X-Changer business, based in Tulsa, Okla., for $592 million.
Chart Industries, Inc. announced it has entered into a definitive asset purchase agreement to acquire the Industrial Air-X-Changers business of Harsco Corp. for $592 million in cash. The transaction is expected to be completed this summer.
Harsco has supplied air-cooled heat exchangers for gas compression and gas processing applications since 1954.It manufactures its products at a 525,000 sq. ft. facility in Tulsa, Okla.
“This is a perfect match of two businesses with complementary strengths that together will generate more value for our customers and even stronger financial results,” said Chart’s President and Chief Executive Officer, Jill Evanko. “We are excited to have such a strategic business and talented team in the air-cooled heat exchanger space join the rest of our great Chart team members and product offerings.”
In a statement, Chart Industries added that the addition of Harsco AXC is another significant step in executing its strategy to focus on its core cryogenic expertise for the industrial gas and energy spaces, as well as achieving its stated goals of delivering 5% to 7% profitable organic growth through the cycle before big LNG and offering innovative solutions to customers with a full suite of products.
The statement added that “Harsco AXC brings us access to a market we were unable to penetrate organically, the compression market, which utilizes air cooled heat exchangers in the production and transport of oil and natural gas. Harsco AXC’s strong customer relationships and quality products for upstream and midstream complete our full ACHX product offering across the gas to liquids cycle with almost no customer overlap.”
Harsco said proceeds from the transaction will be used to pay down debt and provide it with additional financial flexibility to continue investing in new innovation and growth opportunities that will strengthen the company’s capabilities in its remaining businesses. Separately, Harsco said it also intends to divest the remaining two businesses within its Industrial segment, IKG and Patterson-Kelley.
Harsco Chairman and CEO Nick Grasberger said that “this transaction is a great outcome for Harsco and the Air-X-Changers business.
“Under Chart’s ownership, Air-X-Changers will become part of a company that is a leading supplier of mission critical equipment to the energy and chemicals industries, and one that is committed to growing the business for the benefit of its customers and employees.”
Harsco also announced that it has entered into a definitive agreement to acquire Clean Earth, Inc., a specialty waste company, further accelerating its transformation into a global provider of environmental solutions.