Energy company Baker Hughes set to acquire Chart Industries in a $13.6 billion transaction, boosting their energy technology strategy.
Baker Hughes, a leading provider of integrated oilfield services, has announced a definitive agreement to acquire Chart Industries for $13.6 billion. This all-cash transaction, valued at $210 per share, is expected to be immediately accretive to Baker Hughes' growth, margins, earnings per share (EPS), and cash flow, driving enhanced financial returns and long-term value creation for the company.
The acquisition is a testament to Baker Hughes' strong financial execution and strategic focus. According to Lorenzo Simonelli, Baker Hughes' Chairman and CEO, the deal is a milestone for the company. Chart President and CEO, Jill Evanko, stated that the transaction with Baker Hughes delivers immediate value to Chart shareholders.
The combination of Baker Hughes and Chart Industries will position Baker Hughes to be a technology leader. Chart Industries, a leader in process technologies and equipment for handling gas and liquid molecules, brings high-growth, high-margin business to Baker Hughes' Industrial & Energy Technology segment. Chart's global OneChart team has successfully built a product and solution portfolio that spans front-end engineering design through aftermarket services.
The acquisition is anticipated to close by mid-2026, subject to customary closing conditions, including regulatory and shareholder approvals. Both companies' Boards of Directors have unanimously approved the transaction.
The deal significantly expands Baker Hughes’ Industrial & Energy Technology segment with Chart’s $4.2 billion 2024 revenue and $1 billion adjusted EBITDA, broadening exposure to fast-growing markets like LNG exports and digital monitoring services across the liquid gas supply chain. The acquisition is expected to generate approximately $325 million in annualized cost synergies by the end of year three, improving combined operating margins through efficiency gains and enhanced service penetration.
The acquisition will also enhance Baker Hughes' capabilities across critical markets, including natural gas, data centers, and decarbonization initiatives. Chart Industries' expertise in liquefaction, cryogenic processing, and engineered equipment for LNG, hydrogen, and carbon capture (CCUS) technologies will solidify Baker Hughes' position at the forefront of the energy transition.
In summary, the acquisition of Chart Industries is a strategic move that not only scales and diversifies Baker Hughes’ offerings into attractive energy and industrial technology markets but also promises immediate and sustained financial benefits in growth, margins, EPS, and cash flows, supported by strong cost synergies and complementary business models. The acquisition is a significant step forward in Baker Hughes' strategic vision to transform its Industrial & Energy Technology segment and significantly accelerate its vision for the energy transition.
[1] Baker Hughes Press Release, [Link to Press Release] [2] Chart Industries Press Release, [Link to Press Release] [3] Baker Hughes Investor Presentation, [Link to Investor Presentation] [4] Chart Industries Investor Presentation, [Link to Investor Presentation] [5] MarketWatch Article, [Link to MarketWatch Article]
- The acquisition of Chart Industries positions Baker Hughes as a technology leader in the energy sector, as Chart brings high-growth, high-margin business in areas like LNG exports and digital monitoring services.
- The combination of Baker Hughes and Chart Industries will offer Baker Hughes enhanced capabilities across critical markets such as natural gas, data centers, and decarbonization initiatives, thanks to Chart's expertise in liquefaction, cryogenic processing, and engineered equipment for LNG, hydrogen, and carbon capture technologies.
