Research & Analysis: Chart Industries (NYSE: GLTS) + Flowserve (NYSE: FLS)

GLTS & FLS M&A

This week we’ll be discussing the merger between Flowserve Corporation (NYSE: FLS) and Chart Industries (NYSE: GLTS). The story was first announced on June 4, 2025, with the intent of creating a full-cycle company commanding a combined enterprise value of $19b. Luckily the CombineCo name will be taking on the Flowserve name rather than a combined nameplate like FlowChart, or worse…

Chart and Flowserve recently announced an all-stock merger, creating a unified company valued at roughly $19b in enterprise value. The business combination is intended to provide a full-cycle offering, expanding on Flowserve’s flow management products and Chart’s thermal management systems. The remaining company will retain Scott Row, President & CEO of Flowserve, and bring Jill Evanko, CEO of Chart, in as Chair of the Board. As for shareholders, ownership will be split by value:

• 53.5% owned by Chart shareholders

• 46.5% owned by Flowserve shareholders

Accordingly, Chart shareholders will receive 3.165:1 shares of Flowserve common stock.

The merger agreement is set to improve the position Flowserve and Chart, creating a larger, integrated entity in line with its peers:

• Scale to compete with larger competitors, namely Dover and Ingersoll Rand.

• Integrate flow management and thermal management.

• Address the complete life cycle from design to aftermarket support.

• Diversify and expand global footprint to over 50 countries.

• Positioned to drive engineering and design to aftermarket services across end markets.

• Includes LNG systems and nuclear systems configuration.

In total, the combined company will have an installed base of a combined 5.5mm assets across 50 countries. Combining Flowserve’s flow technology and Chart’s thermal regulation technology can create significant synergies across multiple end-markets that fall into a number of megatrends, including:

• LNG facilities

• Nuclear & small modular reactors

• Data centers

This can be exceptionally beneficial to the combined company as LNG facilities move to more modular designs, allowing for significant product integration and arriving at more content per site. The same can be said about nuclear and data center infrastructure with heat rejection and water management. Management expects that the combined company can provide upwards of $4mm in content for SMRs and $70mm in large helium and hydrogen facilities.