Baker Hughes to acquire Chart in $13.6bn deal

Oilfield services and technology company Baker Hughes has struck a deal to acquire Chart Industries in an all-cash transaction worth $13.6bn. This equates to $210 per share of Chart’s common stock.

In a July 29 announcement, the companies described Chart as 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”. The announcement added that Chart’s “highly differentiated” products and services were 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.

The announcement went on to describe Chart as being well-positioned to deepen Baker Hughes’ exposure to “attractive high-growth markets”, which it said included data centres, space and new energy. The companies also see the deal as enhancing Baker Hughes’ exposure to “more durable” industries including industrial gas, metals and mining and food and beverage. Meanwhile, both the Financial Times and Reuters highlighted LNG and data centres as key industries that Baker Hughes would have a stronger foothold for serving following the closing of the deal.

The companies said they see themselves as having complementary product capabilities. Baker Hughes’ core competencies are in rotating equipment, flow control and digital technology and they “pair well” with Chart’s competencies in heat transfer, air and gas handling and process technologies, the announcement said.

As a result of the transaction, a previously announced merger between Chart and flow control systems provider Flowserve has been terminated. Chart said in a separate announcement, also on July 29, that its board of directors had determined, with help from their financial and legal advisers, that an acquisition proposal from Baker Hughes constituted a “superior” proposal. As a result, Flowserve and Chart terminated their deal, with Flowserve opting not to raise its bid for Chart. In its own announcement on the termination of the deal, Flowserve said it would receive a $266mn break-up fee under the terms of the agreement it had originally made with Chart.

Baker Hughes said it had secured fully committed bridge debt financing to fund the acquisition, provided by Goldman Sachs Bank USA, Goldman Sachs Lending Partners and Morgan Stanley Senior Funding. This is expected to be replaced with permanent debt financing prior to the closing of the deal, according to the announcement.

The transaction is expected to close by mid- 2026.