Zacks Investment Research | Dec 20, 2018 08:17PM ET
Chart Industries, Inc. (NASDAQ:GTLS) recently concluded the divestment of its oxygen-related products business — CAIRE Medical — to NGK SPARK PLUG CO., LTD. for $133.5 million. Notably, the deal was announced on Oct 1.
For the deal, Credit Suisse (NYSE:CS) acted as the exclusive financial advisor, with Winston & Strawn LLP being the legal advisor to Chart Industries.
The divestment of CAIRE Medical — a portion of the company’s BioMedical segment — will allow it to focus more on its core cryogenic capabilities. However, the sale does not include part of the company’s BioMedical segment, which is related to its cryogenic products and technological expertise (Cryobiological). Notably, Cryobiological will operate under the company’s Distribution & Storage Western Hemisphere segment.
Earlier, the company completed the buyout of VRV S.r.l. and its subsidiaries. The acquisition is likely to be conducive to its Energy & Chemicals and Distribution & Storage businesses going forward. As a matter of fact, the company anticipates the deal to bolster its revenues by $120 million in the first year of ownership completion. The buyout is also anticipated to be accretive to the company’s earnings per share performance and is likely to bring in significant cost synergies.
Price Performance
In the past year, the Zacks Rank #3 (Hold) company’s shares have returned 30% against 16% decline recorded by the Zacks Investment Research
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