Chart to buy industrial tool maker Howden for $4.4 B in clean energy bet
(Reuters) - U.S. manufacturer Chart Industries Inc said it would buy UK-based industrial equipment maker Howden for $4.4 B, in a bet on growing demand for clean energy technology.
Chart makes engineering equipment used in LNG, hydrogen, biogas and carbon dioxide capture industries, while Scotland-based Howden manufactures fans, steam turbines and other air and gas handling equipment.
Through a combination, the companies plan to increase scale and drive growth in areas that deal with decarbonization of industries, as countries and companies scramble to curb emissions and meet targets under climate accords.
Chart's customers include Shell, Chevron, ExxonMobil and Samsung. It has more than 25 manufacturing locations worldwide.
Atlanta-based Chart will buy Howden from private equity firm KPS Capital Partners through a combination of cash and preferred stock.
The company has $3.38 billion of fully committed bridge financing in place from J.P. Morgan and Morgan Stanley.
Shares of Chart were down 4.8% at $228 before the bell.
(Reporting by Priyamvada C in Bengaluru; Editing by Devika Syamnath and Sriraj Kalluvila)
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