Chart Industries, the US LNG equipment-maker and industrial gases company, has acquired another US company, Cryogenic Gas Technologies Inc., in its latest products expansion move.
Chart said it paid $55 million in cash for Cryo Technologies, which will retain its operational base in Allentown, Pennsylvania.
The acquisition was described by Chart as a global leader in custom engineered process systems to separate, purify, refrigerate, liquefy and distribute high value industrial gases such as hydrogen, helium, argon and hydrocarbons with design capabilities for cold boxes for hydrogen and helium use.
The distribution systems Cryo Technologies supplies are located within the helium and hydrogen liquefaction facilities and are inclusive of trailer loading systems, which facilitates the first step in product distribution.
Chart confirmed that company founder and President Rick Hessinger, along with the entire Cryo Technologies team, will stay with Chart and continue to be located in their offices in Allentown.
“We could not be more excited to welcome Rick and the Cryo Technologies team into the Chart family,” stated Jill Evanko, Chart’s Chief Executive and President.
“Their world class, differentiated cryogenic engineering expertise, global project experience in hydrogen and helium liquefaction coupled with our process technologies, brazed aluminum heat exchanger and cold box manufacturing capabilities creates the only multi-molecule full-solution liquefaction and equipment offering in the world,” Evanko explained.
“Couple the above complementary nature of the business with the fact that our companies have worked together for 20 years, and immediate and significant synergies exist,” stated the Chart CEO.
Both Chart, based in Atlanta, Georgia, and Cryo Technologies have very active commercial order pipelines with multiple requests for hydrogen liquefaction and processing.
In recent years, Chart acquired Harsco Corp.’s Air-X-Changers business, boosting its offering of air-cooled heat exchangers and industrial fans.
Other Chart takeovers have included German company VCT Vogel, a servicer of cryogenic and mobile gas tank equipment and trucks and a European leader in truck-mounted drive and control systems, and the small US and Italian companies,, Hudson Products and VRV SpA.
“The combination of Chart and Cryo Technologies offers the market a unique one-stop shop for customers who want to liquefy and market the hydrogen molecule, regardless of plant capacity, but need an experienced and reliable equipment and process supplier for liquefaction and storage,” stated Chart.
Additionally, Cryo Technologies has expertise in helium liquefaction and this will open up that sector for Chart as large helium liquefaction projects also requiring storage, ISO containers and transport.
Chart, which is expected to publish its earnings on February 18, said the acquired company is expected to contribute approximately $30M of revenue in Chart’s 2021 outlook.