Baker Hughes to Acquire Chart Industries in 13.6B Energy Tech Deal

Baker Hughes Company BKR announced that it has entered into a definitive agreement to acquire Chart Industries GTLS for $210 per share in cash, valuing the deal at $13.6 billion. The acquisition is a major strategic move aimed at accelerating Baker Hughes’ transformation into a leading energy and industrial technology company while enhancing its Industrial & Energy Technology (“IET”) segment.

BKR Strengthens IET Segment With Chart Acquisition

Chart Industries is a global leader in process technologies and equipment for gas and liquid molecule handling, generating $4.2 billion in revenues and $1 billion in adjusted EBITDA in 2024. With 65 manufacturing sites and over 50 service centers worldwide, Chart brings expertise across LNG, data centers, decarbonization and industrial gas markets. The combined portfolio is expected to deliver enhanced lifecycle solutions for critical energy applications and expand Baker Hughes’ reach in high-growth industrial sectors.

BKR Sees Strategic and Financial Upside

Baker Hughes anticipates $325 million in annualized cost synergies by year three through supply-chain consolidation and operational efficiencies. The transaction is projected to be accretive to growth, margins, EPS, and cash flow, delivering double-digit earnings per share growth within the first full year post-closing. Additionally, the deal strengthens Baker Hughes’ aftermarket services business by increasing its installed base and driving recurring revenue streams.

BKR Transaction Details and Timeline

The acquisition, unanimously approved by both companies’ boards, is subject to regulatory approvals and a shareholder vote from Chart investors. Baker Hughes has secured bridge debt financing for the purchase and plans to reduce leverage to 1.0-1.5x within 24 months after closing. The deal is expected to be closed by mid-2026, with Baker Hughes maintaining its A credit rating and long-term dividend growth strategy.

Zacks Rank and Key Picks

Currently, BKR and GTLS carry a Zacks Rank #3 (Hold) each.

Investors interested in the energy sector may look at some better-ranked stocks like Antero Midstream Corporation AM and Enbridge Inc. ENB, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 5.50%.

Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts, protecting it against big oil price swings or changes in shipment. 

ENB’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 0.28%.

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This article originally published on Zacks Investment Research (zacks.com).

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