LNG equipment-maker Chart completes Italy-based unit sale to London equity firm attracted by gas and LNG specialities
Chart Industries, the LNG equipment and industrial gas technology company, has closed the sale of the subsidiary Cofimco to a London-based private equity firm as divestments continue to pay down debts while Chart will now be a customer of Cofimco.
The purchaser of Cofimco was PX3 Partners in an all-cash transaction for around $80 million.
PX3 Partners said it was pleased to acquire Cofimco, a leading provider of engineered air-moving solutions used in demanding industrial cooling applications.
“The transaction represented the second investment from PX3’s inaugural fund and draws on PX3’s transatlantic reach and global DNA, while leveraging the firm’s proven corporate carve-out skill set,” said the firm.
Bespoke products
Headquartered in Italy, Cofimco is a leading designer, manufacturer and seller of axial cooling fans and related services.
“Its specialised and bespoke products and services are distributed to a global and diversified customer base across more than 60 countries and support their industrial processes with mission critical heat-control solutions, ensuring that they can operate safely and continuously, including by reducing thermal pollution,” explained PX3.
“Cofimco’s products and services are deployed in demanding heat-generating processes in a wide range of end markets, including energy and power generation, heating, ventilation and air conditioning (HVAC), industrials and LNG,” it added.
PX3 said that Cofimco was a trusted and globally recognised brand with proven, patented products and technologies.
The company benefits from a large installed base and a strong aftermarket sales model, with Chart Industries remaining a customer of Cofimco following the transaction.
PX3’s investment in Cofimco aligns closely with the three pillars of its investment strategy.
“Through its customer centricity and energy efficient products, the company benefits from two of the transformative themes that PX3 seeks to underwrite, namely Compete Smarter and Planet First,” it stated.
“Furthermore, it operates in the branded light manufacturing and building tech segments of industrials, two of PX3’s areas of focus,” it added.
Benefits
PX3 said that Cofimco would benefit further from PX3’s global network of deep relationships and its expertise in helping businesses grow internationally across Europe, North America and Asia.
“Following our investment in Filtration, we are excited to announce the acquisition of Cofimco, a global market leader in engineered air moving and cooling solutions,” PX3 concluded.
PX3 stands for “purpose, passion, and performance” and is a pan-European private equity firm that targets companies operating within select segments of the business services, consumer and leisure, and industrials sectors with strong business fundamentals.
“PX3 is committed to supporting Cofimco and its management team to drive transformative growth internationally and operational improvement,” it said.
Chart Industries wins approvals for $4.4Bln takeover of Howden as CEO Evanko to address London event
Chart Industries Inc., the LNG equipment-maker and industrial gas technology company, has received all regulatory approvals to close the acquisition of UK engineering firm Howden for a purchase price of $4.4 billion from affiliates of KPS Capital Partners LP.
“Howden is a leading global provider of mission critical air and gas handling products providing service and support to customers around the world in highly diversified end-markets and geographies,” said Chart.
Howden manufactures highly engineered fans, compressors, rotary heat exchangers, steam turbines, and other air and gas-handling products, services and solutions.
Chart, based in Atlanta, Georgia, has funded the acquisition through a combination of cash and shares of a newly created class of preferred stock.
The UK company is headquartered in Renfrew, Scotland, and employs more than 6,500 people globally in 35 countries, including more than 750 engineers.
In the LNG sector alone, Chart has become a leading supplier of technology for major LNG projects under construction on the US Gulf Coast and is involved in providing regasification and LNG transportation equipment around the world, including in Europe and Asia.
New York-based fund KPS acquired Howden in 2019 from Colfax Corp. in a highly complex global corporate carve-out transaction.
Synergies
Chart said it had identified significant commercial synergies in the takeover that are expected to reach $350M annually by year three.
The US company said the combination of Chart and Howden furthers its global leadership position in highly engineered process technologies and products serving clean power, clean water, clean food and clean industrials.
Chart also announced it was scheduled to present at the Bank of America Global Industrials Conference in London on March 21 at 12:15 pm Greenwich Mean Time (8:15 am. Eastern Time).
Chart Chief Executive and President Jill Evanko is scheduled to be the presenter at the BoA event.
US LNG equipment-maker and gases company Chart to acquire UK’s Howden for $4.4Bln in cash and shares
Chart Industries, the US LNG equipment-maker and industrial gases and clean energy company, has signed definitive agreements to acquire Howden, a leading UK-based global provider air and gas handling products and services, for a purchase price of $4.4 billion from affiliates of KPS Capital Partners LP.
