Chart Industries (GTLS) said pre-market Thursday that it has agreed to acquire VRV SpA, a manufacturer of pressure equipment used in the cryogenic and energy & petrochemical end markets.
Under the agreement, Chart Industries will pay EUR125 million ($147 million) and assume outstanding debt of the company totaling approximately EUR70 million.
The company will fund the acquisition using available cash on hand and debt under its current credit facility or another financing alternative. It also said that the transaction is expected to add annual net sales of $115 million in 2019, attain significant cost synergies related to operational efficiencies and sourcing, and be accretive to EPS in the first full year of ownership.
The company also said that it has realigned its segmentation and formed a global commercial team to support the strategic acquisition as well as its bid to expand outside North America. Results will be immediately reported in Energy & Chemicals, Distribution & Storage Western Hemisphere, Distribution & Storage Eastern Hemisphere, and BioMedical.