U.S.-based equipment manufacturer Chart Industries (GTLS.N) and flow control systems maker Flowserve Corp (FLS.N) said on Wednesday they will merge in an all-stock deal expected to have an enterprise value of about $19 billion.
Chart shareholders will receive 3.165 shares of Flowserve's common stock for each share held, the companies said.
Shares of Chart Industries were up 2.3% in premarket trading, while those of Flowserve fell 1%.
Chart shareholders will own about 53.5% of the combined company, while Flowserve shareholders will hold the rest.
Chart CEO Jill Evanko will serve as the chair of the new company's board, while Flowserve CEO Scott Rowe will have the top job at the combined company.
The deal is expected to generate about $300 million in annual cost savings within three years of the transaction, which is expected to close in the fourth quarter of 2025.
