Chart Industries Inc. (Chart) has entered into a definitive asset purchase agreement to acquire the Industrial Air-X-Changers business (Harsco AXC) of Harsco Corp. The US$592 million deal reinforces Chart’s focus on cryogenic engineering and products for the industrial gas and energy spaces and provides access to the compression market for air cooled heat exchangers (ACHX), completing Chart’s full ACHX offering for both process and compression.
“This is a perfect match of two companies with complementary strengths,” said Jill Evanko, president and CEO of Chart. “This strategic acquisition will enable us to build on the strong foundation Harsco has constructed for its Air-X-Changers business. We look forward to integrating the strong management team and very talented team members into the Chart family.”
Upon closing of the sale, Chart will report externally in four segments: Distribution & Storage East; Distribution & Storage West; Energy & Chemicals Cryogenics; and Energy & Chemicals FinFans (E&C FinFans).
Harsco AXC will operate within Charts E&C FinFans segment. Focusing on air cooled heat exchangers and fans, the E&C FinFans segment is comprised of the products and technologies from Harsco AXC, Chart Cooler Service, and the Hudson Products businesses that Chart acquired in 2017.
“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,” said Evanko. “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.”
“The sale of our Air-X-Changers business marks a significant step for Harsco as we focus on delivering superior performance across market cycles and scaling the differentiated and value-added environmental solutions that are becoming important growth drivers for the company,” said Nick Grasberger, chair and chief executive officer of Harsco. Headquartered Camp Hill, Pennsylvania, USA, Harsco is a diversified industrial company providing a range of onsite services and engineered products to the global energy, steel, aluminum, and railway sectors. “As part of our strategy, we will continue to optimize our portfolio and unlock value for our shareholders by exiting certain businesses. 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.”