Chart Industries, Inc. (CSA CSM) announced its agreement to acquire VRV s.p.a. and its subsidiaries, a multinational corporation with facilities for the design and manufacture of equipment serving the cryogenic, energy and petrochemical markets.
Chart has agreed to pay approximately $147 million by combining available cash with credit financing. The company will also assume approximately $83 million of VRV’s outstanding indebtedness, though Chart expects net sales of $115 million from the acquisition in 2019.
In a statement, Chart emphasized that VRV has a rich history of engineering and design dating back to its beginning in 1956. And during the 1970s, the company began to design and manufacture cryogenic equipment driven by Massimiliano Spada and then by his sons, Federico Spada and Alessandro Spada, both of whom will continue in executive roles in Chart.
“VRV has technical strengths and manufacturing capabilities which are an excellent complement to ours and brings a strong leadership team for continued growth,” said Jill Evanko, Chart’s CEO. “Together we will now be able to provide a broader set of solutions to our customers and deliver faster results through an expanded global footprint.”
Chart says that the acquisition focuses on core cryogenic and energy technologies, for which the company is realigning its segmentation and naming a global commercial team. “We expect these changes will provide improved transparency of business results to our shareholders, better align with Chart’s customer needs, and facilitate our growth strategies through collaboration of global and regional approaches,” Chart said in an online statement.