Baker Hughes announced today a definitive agreement to acquire Chart Industries in a deal valued at a total of $13.6 billion. Notably, the acquisition will strengthen Baker Hughes’ presence in the LNG and data center sectors.
Chart is a global leader in the design, engineering and manufacturing of process technologies and equipment for gas and liquid molecule handling across a broad range of industrial and energy end markets, Baker Hughes said in a news release announcing the deal. Chart’s products and solutions are used in every phase of the liquid gas supply chain, from engineering and design to installation, preventative maintenance to repair and service, as well as ongoing digital monitoring. Chart generated $4.2 billion in revenue in 2024. It operates 65 manufacturing locations with over 50 service centers globally.
“This acquisition is a milestone forBaker Hughesand a testament to our strong financial execution and strategic focus as we continue to define our position as a leading energy and industrial technology company,” saidBaker Hughes Chairmanand CEOLorenzo Simonelli. “We know Chart well, having worked alongside them on many critical energy infrastructure projects.”
“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,” Simonelli continued.
“This all-cash transaction withBaker Hughesdelivers immediate value to Chart shareholders,” said Chart President and CEOJill Evanko. “Thanks to the outstanding work of our global OneChart team, we have successfully built a product and solution portfolio that spans front-end engineering design through aftermarket services.”
“The Baker Hughes team shares our engineering-focused culture and commitment to operational excellence,” Evanko continued. “Our complementary solutions fit seamlessly with Baker Hughes’ Industrial & Energy Technology segment, and together we can help our customers solve the most critical energy access and sustainability needs.”
Baker Hughes detailed compelling strategic and financial benefits from the deal, including:
- Strategic expansion into growth markets, including data centers, New Energy and industrial gas.
- Complementary capabilities: Baker Hughes’ core competencies in rotating equipment, flow control and digital technology pair well with Chart’s competencies in heat transfer, air and gas handling, and process technologies.
- Strengthens Baker Hughes’ Lifecycle Revenue Mix:The combined company will have a large and structurally growing installed base creating opportunities to drive growth in high-value aftermarket products and services, as well as digital services using Chart’s Uptime digital platform. Baker Hughes’ expansive service footprint is expected to increase service rates for Chart’s installed base driving more profitable, recurring revenue across the combined portfolio.
- Delivers Substantial Synergies: Baker Hugheshas identified$325 millionof annualized cost synergy opportunities by the end of year three.Baker Hughesintends to drive productivity improvements by leveraging Baker Hughes’ scale in manufacturing and consolidating the companies’ supply chains, as well as optimizing costs across the SG&A and R&D functions. Baker Hughes’ confidence in realizing these synergies is supported by the continued success of its business system, a key driver of IET margin expansion over the past three years.
- Attractive Financial Profile and Returns for Shareholders:The transaction is expected to be immediately accretive to growth, margins and cash flow, with double-digit EPS accretion in the first full year after the transaction closes. Chart’s differentiated position in attractive and growing markets is expected to deliver sustainable underlying growth that will be accretive to Baker Hughes’ through-cycle growth profile. The combination of strong growth, attractive margins and the synergy potential to expand operating margins meet all of Baker Hughes’ return criteria, including double-digit ROIC.
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