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Chart Industries (GTLS) to Buy Sustainable Energy, Adds HTEC Stake
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Chart Industries, Inc. (GTLS - Free Report) yesterday announced that it will soon acquire Sustainable Energy Solutions, Inc. Per the letter of intent signed, the company will pay $20 million in cash and some related earn-out.
In addition to this announcement, the company disclosed that it acquired a 15.6% stake in HTEC Hydrogen Technology & Energy Corporation (“HTEC”). The two parties also worked on a Memorandum of Understanding related to hydrogen.
It is worth mentioning here that Chart Industries’ shares gained 5.78% yesterday, closing the trading session at $121.08.
Inside the Headlines
Based in Utah, Sustainable Energy is a specialist in dealing with energy industry-related sustainability problems. Its most popular offering, which captures carbon from fossil fuel emissions, is Cryogenic Carbon Capture technology. This solution can be easily used with cryogenic storage equipment, heat exchangers (both air-cooled and brazed aluminum), IPSMR refrigeration system, and others.
As noted, the buyout will expand Chart Industries’ existing offerings in the carbon capture solutions space. It will also expand its capabilities in multiple addressable markets, including energy storage, liquid CO2 onsite storage options and others. In the future, the buyout will help expand the company’s addressable market in direct air and carbon capture by $200 million to $600 million.
In addition to the above-mentioned facts, Chart Industries communicated that this buyout will not notably impact its 2021 expectations. Upon the completion of necessary document work, the buyout is expected to be completed in a month’s time.
As regard to stake acquisition in HTEC, Chart Industries paid CAD$20 million. This investment is anticipated to solidify the company’s presence in the clean energy market. Notably, HTEC is a specialist in manufacturing and operating solutions related to hydrogen fuel supply. It has strong footholds in Canada and a solid customer base.
Also, both Chart Industries and HTEC will work on a commercial agreement, whereby the former will supply hydrogen equipment to the latter’s projects.
Chart Industries’ Buyout Activities
The company believes in acquiring businesses/assets in an attempt to gain access to new customers, regions and product lines.
So far in the fourth quarter of 2020, Chart Industries acquired Worthington Industries, Inc.’s (WOR - Free Report) cryogenic trailer and hydrogen trailer business in Theodore, AL. In addition, the company purchased Microbulk cryogenic tank business from IC Biomedical for an undisclosed amount as well as added BlueInGreen, LLC, for $20 million and certain earn-outs, to its portfolio.
Zacks Rank, Price Performance and Earnings Estimate Trend
With a market capitalization of $4.1 billion, Chart Industries currently carries a Zacks Rank #3 (Hold).
In the past three months, the company’s shares have gained 71.7% compared with the industry’s growth of 11.2%.
Meanwhile, the Zacks Consensus Estimate for its earnings is pegged at $2.49 for 2020 and $3.34 for 2021, reflecting a decline of 2.4% and growth of 7.4% from the respective 60-day-ago figures. Also, the consensus estimate for the fourth quarter has been raised by 2.6% to 80 cents during the same timeframe.
Two better-ranked stocks in the industry are Altra Industrial Motion Corp. and Applied Industrial Technologies, Inc. (AIT - Free Report) . While Altra Industrial currently sports a Zacks Rank #1 (Strong Buy), Applied Industrial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for these companies improved for the current year. Also, earnings surprise in the last reported quarter was positive 77.55% for Altra Industrial and 39.06% for Applied Industrial.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Chart Industries (GTLS) to Buy Sustainable Energy, Adds HTEC Stake
Chart Industries, Inc. (GTLS - Free Report) yesterday announced that it will soon acquire Sustainable Energy Solutions, Inc. Per the letter of intent signed, the company will pay $20 million in cash and some related earn-out.
In addition to this announcement, the company disclosed that it acquired a 15.6% stake in HTEC Hydrogen Technology & Energy Corporation (“HTEC”). The two parties also worked on a Memorandum of Understanding related to hydrogen.
It is worth mentioning here that Chart Industries’ shares gained 5.78% yesterday, closing the trading session at $121.08.
Inside the Headlines
Based in Utah, Sustainable Energy is a specialist in dealing with energy industry-related sustainability problems. Its most popular offering, which captures carbon from fossil fuel emissions, is Cryogenic Carbon Capture technology. This solution can be easily used with cryogenic storage equipment, heat exchangers (both air-cooled and brazed aluminum), IPSMR refrigeration system, and others.
As noted, the buyout will expand Chart Industries’ existing offerings in the carbon capture solutions space. It will also expand its capabilities in multiple addressable markets, including energy storage, liquid CO2 onsite storage options and others. In the future, the buyout will help expand the company’s addressable market in direct air and carbon capture by $200 million to $600 million.
In addition to the above-mentioned facts, Chart Industries communicated that this buyout will not notably impact its 2021 expectations. Upon the completion of necessary document work, the buyout is expected to be completed in a month’s time.
As regard to stake acquisition in HTEC, Chart Industries paid CAD$20 million. This investment is anticipated to solidify the company’s presence in the clean energy market. Notably, HTEC is a specialist in manufacturing and operating solutions related to hydrogen fuel supply. It has strong footholds in Canada and a solid customer base.
Also, both Chart Industries and HTEC will work on a commercial agreement, whereby the former will supply hydrogen equipment to the latter’s projects.
Chart Industries’ Buyout Activities
The company believes in acquiring businesses/assets in an attempt to gain access to new customers, regions and product lines.
So far in the fourth quarter of 2020, Chart Industries acquired Worthington Industries, Inc.’s (WOR - Free Report) cryogenic trailer and hydrogen trailer business in Theodore, AL. In addition, the company purchased Microbulk cryogenic tank business from IC Biomedical for an undisclosed amount as well as added BlueInGreen, LLC, for $20 million and certain earn-outs, to its portfolio.
Zacks Rank, Price Performance and Earnings Estimate Trend
With a market capitalization of $4.1 billion, Chart Industries currently carries a Zacks Rank #3 (Hold).
In the past three months, the company’s shares have gained 71.7% compared with the industry’s growth of 11.2%.
Meanwhile, the Zacks Consensus Estimate for its earnings is pegged at $2.49 for 2020 and $3.34 for 2021, reflecting a decline of 2.4% and growth of 7.4% from the respective 60-day-ago figures. Also, the consensus estimate for the fourth quarter has been raised by 2.6% to 80 cents during the same timeframe.
Chart Industries, Inc. Price and Consensus
Chart Industries, Inc. price-consensus-chart | Chart Industries, Inc. Quote
Stocks to Consider
Two better-ranked stocks in the industry are Altra Industrial Motion Corp. and Applied Industrial Technologies, Inc. (AIT - Free Report) . While Altra Industrial currently sports a Zacks Rank #1 (Strong Buy), Applied Industrial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for these companies improved for the current year. Also, earnings surprise in the last reported quarter was positive 77.55% for Altra Industrial and 39.06% for Applied Industrial.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>