Chart Industries (GTLS, Financial) and Flowserve (FLS, Financial) are joining forces in a headline-making $19 billion all-stock merger that could create one of the most dominant players in global industrial process technologies. Announced this week, the deal brings together two highly complementary businesses with a combined installed base of over 5.5 million assets across more than 50 countries. Chart shareholders will receive 3.165 shares of Flowserve for every GTLS share, giving them a 53.5% stake in the new entity. The combined company expects to generate $8.8 billion in revenue, with nearly half of that coming from high-margin aftermarket services.
But this merger isn't just about scale—it's about a full-stack transformation. From cryogenic compression to digital flow management, the new firm wants to offer cradle-to-grave solutions for sectors like LNG, carbon capture, data centers, and even space. It's aiming for $300 million in cost synergies within three years, plus new cross-selling revenue opportunities that could lift topline growth by another 2%. With recurring revenue already at 42% of the total mix, management sees a path to more predictable cash flows and durable margins. Jill Evanko (Chart) will become Board Chair, while Scott Rowe (Flowserve) steps in as CEO.
And the numbers? On a trailing 12-month basis, the combined entity pulled in $1.8 billion in cash flow. Management expects the deal to be accretive to adjusted EPS in year one, while maintaining a 2.0x net debt-to-EBITDA ratio—supporting steady dividends and balance sheet strength. If the deal clears shareholder and regulatory hurdles, the new firm will launch under a fresh brand name in late 2025, with headquarters in Dallas and major offices in Atlanta and Houston. For investors betting on long-term infrastructure and energy tech, this could be one to watch.
