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Chart Industries Closes Divestment of CAIRE Medical Business

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Chart Industries, Inc. (GTLS - Free Report) recently concluded the divestment of its oxygen-related products business — CAIRE Medical — to NGK SPARK PLUG CO., LTD. for $133.5 million. Notably, the deal was announced on Oct 1.

For the deal, Credit Suisse acted as the exclusive financial advisor, with Winston & Strawn LLP being the legal advisor to Chart Industries.

The divestment of CAIRE Medical — a portion of the company’s BioMedical segment — will allow it to focus more on its core cryogenic capabilities. However, the sale does not include part of the company’s BioMedical segment, which is related to its cryogenic products and technological expertise (Cryobiological). Notably, Cryobiological will operate under the company’s Distribution & Storage Western Hemisphere segment.

Earlier, the company completed the buyout of VRV S.r.l. and its subsidiaries. The acquisition is likely to be conducive to its Energy & Chemicals and Distribution & Storage businesses going forward. As a matter of fact, the company anticipates the deal to bolster its revenues by $120 million in the first year of ownership completion. The buyout is also anticipated to be accretive to the company’s earnings per share performance and is likely to bring in significant cost synergies.

Price Performance

In the past year, the Zacks Rank #3 (Hold) company’s shares have returned 30% against 16% decline recorded by the industry it belongs to.

Stocks to Consider

A couple of better-ranked stocks from the same industry are Luxfer Holdings PLC (LXFR - Free Report) and Applied Industrial Technologies, Inc. (AIT - Free Report) . While Luxfer Holdings sports a Zacks Rank #1 (Strong Buy), Applied Industrial Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Luxfer Holdings surpassed estimates thrice in the trailing four quarters, the average positive earnings surprise being 24.27%.

Applied Industrial Technologies outpaced estimates in each of the preceding four quarters, the average earnings surprise being 11.67%.

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