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Chart Industries to Acquire VRV, Realign Business Segments

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Recently, Chart Industries, Inc. (GTLS - Free Report) announced that it has inked a definite agreement to acquire the premium diversified multinational company — VRV s.p.a. and its subsidiaries (“VRV”) — for roughly $147 million. The acquisition is anticipated to boost the company’s competency across the global energy, cryogenic and petrochemical industries.

Inside the Headlines

VRV manufactures and designs state-of-the-art pressure-equipment products and owns automated purpose-built production facilities. The company provides its services across the energy, cryogenic and petrochemical end markets.

Chart Industries believes the VRV acquisition will be conducive to its Energy & Chemicals and Distribution & Storage businesses in the quarters ahead. The buyout will expand the company’s Energy & Chemicals business in the European market. Addition of VRV’s French, Indian and Italian commercial and production facilities will enhance the company’s port access and manufacturing capability. Moreover, the acquisition will expand the existing repair and service offering provided by the company.

The VRV acquisition is anticipated to bolster Chart Industries’ revenues by $115 million in 2019. The buyout will also be accretive to the company’s earnings per share performance in the first year of ownership completion. Also, Chart Industries expects that the transaction will bring in significant amount of cost synergies.

In sync with the VRV business-integration move, Chart Industries has decided to realign its existing segmental structure. Effective immediately, the company will be reporting its results under four segments — Distribution & Storage Western Hemisphere (the Americas), Energy & Chemicals, BioMedical and Distribution & Storage Eastern Hemisphere (Middle East, Europe, and Asia including China). Chart Industries intends to provide superior customer services and improve business transparency to shareholders on grounds of this strategic segmental reshuffling move.

Price Performance

Over the last three months, Chart Industries’ shares have rallied 26.1%, outperforming 11.4% growth recorded by the industry it belongs to.

The company currently carries a Zacks Rank #2 (Buy).

Other Stocks to Consider

Some other top-ranked stocks in the same space are listed below:

Colfax Corporation (CFX - Free Report) sports a Zacks Rank of 1 (Strong Buy). The company pulled off an average positive earnings surprise of 7.91%, in the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

DXP Enterprises, Inc. (DXPE - Free Report) also flaunts a Zacks Rank of 1. The company generated an impressive average positive earnings surprise of 101.32% in the trailing four quarters.

Luxfer Holdings PLC (LXFR - Free Report) is another Zacks #1 Ranked company. The company delivered an average positive earnings surprise of 11.04% during the same time frame.

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