Chart Industries, Inc. (NYSE: GTLS) (“Chart”), a global leader in engineering and manufacturing of process technology and equipment for industrial gas, specialty and energy transition markets, has completed its acquisition of Howden, a leading global provider of mission critical air and gas handling products and services, from affiliates of KPS Capital Partners, LP (“KPS”).
The strategic combination of Chart and Howden expands our offering of products and solutions across the Nexus of Clean™ - clean power, clean water, clean food and clean industrials. The combination also provides access to new specialty products and ESG-linked end markets such as nuclear, energy recovery and electrification. The complementary nature of the equipment and solution portfolios results in a differentiated offering across stationary and rotating equipment and is further differentiated by the additional 750 Howden engineers coming with the acquisition, doubling our global engineering team to over 1,500.
We are excited to welcome the Howden team to the Chart family and look forward to the combined business executing on record momentum and well-defined synergies. Since we announced the combination in November 2022, Chart has received numerous inbounds from customers that see the combined benefits we can offer.
Through the acquisition of Howden, Chart has gained immediate access to new customers and commercial opportunities, increasing our geographic footprint to over 35 countries. This geographic footprint allows for increased commercial and manufacturing capabilities as well as the ability to bid on projects regionally that were not previously accessible.
Aftermarket, service and repair will represent approximately 30% of the combined organisation with approximately 42% gross margin as a percent of sales. The increased global reach, coupled with two large existing installed bases, will result in less business cyclicality. We will also leverage Howden’s digital offering of Howden Uptime and Ventsim™ across our global installed base.
The new Chart executive management team will include a balance of Chart and legacy Howden executives. We will continue to operate under our “One Chart” commercial and engineering structures, further allowing us to leverage our full solution set across our diverse end markets.