LNG engineer Chart Industries has entered into a definitive asset purchase agreement to acquire the Industrial Air-X-Changers business (Harsco AXC) of Harsco Corporation for $592 million in cash.
The addition of Harsco AXC is another significant step in executing its strategy to focus on its core cryogenic expertise for the industrial gas and energy spaces, as well as achieving its goals of delivering 5 to 7 percent profitable organic growth through the cycle before big LNG projects.
In September 2017 Chart acquired Hudson Products, which added air-cooled heat exchangers for the downstream (LNG) market as well as fans.
“Similarly, 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,” the statement reads.
Upon closing, Chart will report externally in four segments, Distribution & Storage East, Distribution & Storage West, Energy & Chemicals Cryogenics and Energy & Chemicals FinFans.
“E&C Cryogenics will contain our brazed aluminium heat exchangers and cold boxes, focusing on executing on-time, quality systems for our customers, in particular, our big LNG order pipeline. This change allows our engineering and manufacturing experts in E&C Cryogenics to focus on this rapidly growing business,” the company said.
The addition of Harsco AXC enables Chart’s newest segment, E&C FinFans, to concentrate on its unique and broad product offering and capabilities in air-cooled heat exchangers and fans.
This segment will be comprised of the Hudson Products businesses, Harsco AXC, and Chart Cooler Services.