Chart Industries, Inc. has announced the acquisition of Cryogenic Gas Technologies, Inc. for $55 million in cash (subject to certain customary adjustments). Cryo Technologies is a global leader in custom engineered process systems to separate, purify, refrigerate, liquefy and distribute high value industrial gases such as hydrogen, helium, argon and hydrocarbons with design capabilities for cold boxes for hydrogen and helium use. The distribution systems Cryo Technologies supplies are located within the helium and hydrogen liquefaction facilities and are inclusive of trailer loading systems, which facilitates the first step in product distribution.
CT Founder and President Rick Hessinger, along with the entire highly skilled CT team (270 years of combined cryogenic experience!) will stay with Chart and continue to be located in their offices in Allentown, Pennsylvania (USA).
“We could not be more excited to welcome Rick and the Cryo Technologies team into the Chart family,” stated Jill Evanko, Chart’s CEO and President. “Their world class, differentiated cryogenic engineering expertise, global project experience in hydrogen and helium liquefaction coupled with our process technologies, brazed aluminum heat exchanger and cold box manufacturing capabilities creates the only multi-molecule full-solution liquefaction and equipment offering in the world.”
Couple the above complementary nature of the business with the fact that our companies have worked together for 20 years, and immediate and significant synergies exist. Both of our businesses have very active commercial order pipelines and there are multiple requests for hydrogen liquefaction and processing. The combination of our skillsets immediately increases capability and capacity for both CT and Chart’s active commercial opportunities (including design and installation). The combination of Chart and Cryo Technologies offers the market a unique one-stop shop for customers who want to liquefy and market the hydrogen molecule, regardless of plant capacity, but need an experienced and reliable equipment and process supplier for liquefaction and storage. Combined, we bring superior technology and fabrication capability in super insulation, vacuum system and helium leak detection, all of which are essential to produce the highest quality and best performing hydrogen and helium liquefaction systems. Additionally, Cryo Technologies’ expertise in helium liquefaction opens up the helium market to us and provides access to large helium liquefaction projects also requiring storage, ISO containers, and transport.
CT is expected to be immediately accretive to Chart. CT is expected to contribute approximately $30 million of revenue and $0.15 to $0.20 of non-diluted earnings per share on approximately 35.5 million weighted shares outstanding to Chart’s 2021 outlook (full updated 2021 guidance will be released on Thursday, February 18, 2021).
Winston & Strawn LLP served as legal advisor to Chart on the transaction. Saxton & Stump, LLC served as legal advisor to Mr. Hessinger, the controlling shareholder of Cryo Technologies.