Baker Hughes to Acquire Chart Industries in $13.6 Billion Deal

Baker Hughes, a global energy technology company, announced on July 29, 2025, its agreement to acquire Chart Industries in an all-cash transaction valued at $13.6 billion, including debt. This strategic move aims to enhance Baker Hughes' capabilities in liquefied natural gas (LNG), data centers, and decarbonization technologies, marking a significant shift from traditional oilfield services to diversified energy solutions.

Under the terms of the agreement, Baker Hughes will pay $210 per share in cash for all outstanding shares of Chart Industries, representing a 22% premium over Chart's last closing price prior to the announcement. The transaction is expected to close by mid-2026, pending regulatory and shareholder approvals.

Chart Industries, headquartered in Atlanta, Georgia, specializes in designing and manufacturing equipment for gas and liquid molecule handling, including cryogenic tanks and cooling systems. In 2024, the company reported revenues of $4.2 billion and adjusted EBITDA of $1.0 billion. It operates 65 manufacturing locations and over 50 service centers globally.

Lorenzo Simonelli, Chairman and CEO of Baker Hughes, stated, "The combination positions Baker Hughes to be a technology leader that can provide engineering and technology expertise to meet the growing demand for lower-carbon, efficient energy and industrial solutions."

The acquisition is expected to deliver substantial synergies, with Baker Hughes projecting $325 million in annualized cost savings by the end of the third year post-acquisition. These savings are anticipated to arise from manufacturing efficiencies, supply chain consolidation, and optimization across research and development functions.

This deal also overtakes a prior $19 billion all-stock merger agreement between Chart Industries and Flowserve Corporation. Following Baker Hughes' superior proposal, Chart terminated the merger agreement with Flowserve, resulting in Flowserve receiving a $266 million breakup fee.

The boards of both Baker Hughes and Chart Industries have unanimously approved the transaction. The deal is now subject to customary closing conditions, including approval by Chart's shareholders and regulatory clearances.

Financial advisors for Baker Hughes include Goldman Sachs, Centerview Partners, and Morgan Stanley, with legal counsel provided by Cleary Gottlieb Steen & Hamilton and WilmerHale. Chart Industries' financial advisor is Wells Fargo, with legal counsel from Winston & Strawn.

This acquisition aligns with Baker Hughes' strategy to diversify beyond traditional oilfield services and strengthen its position in the energy transition. By integrating Chart's capabilities, Baker Hughes aims to enhance its offerings in LNG, hydrogen, and carbon capture technologies, positioning itself competitively in the evolving energy market.

Following the announcement, Chart Industries' stock rose by 16.2% in premarket trading, reflecting investor optimism about the deal. Flowserve's shares also saw an increase of 4.36% in premarket trading, possibly due to the receipt of the breakup fee.

The transaction is expected to be completed by mid-2026, with Baker Hughes maintaining its commitment to an A credit rating whilst projecting net leverage of 2.25x at closing, reducing to 1.0-1.5x within 24 months.

Baker Hughes' acquisition of Chart Industries represents a strategic maneuver to diversify its portfolio and strengthen its position in the energy transition era. By leveraging Chart's specialized technologies, Baker Hughes aims to offer comprehensive solutions across the energy value chain, aligning with the global shift towards cleaner energy sources.