Flowserve Corporation announced the termination of its previously announced all-stock merger agreement with Chart Industries, Inc. The decision followed Flowserve's Board of Directors choosing not to submit a revised offer after Chart's Board determined an unsolicited acquisition proposal from Baker Hughes constituted a 'superior proposal.' This marks the end of the planned $19 billion merger of equals.
In accordance with the terms of the merger agreement, Flowserve will receive a $266 million termination payment from Chart Industries. Scott Rowe, Flowserve's President and CEO, stated that the decision not to pursue a revised offer demonstrates the company's commitment to financial discipline and confidence in its standalone business. He highlighted Flowserve's strong financial momentum and operational performance.
Rowe emphasized the successful execution of Flowserve's 3D growth strategy—Diversify, Decarbonize, and Digitize—and the Flowserve Business System in enhancing productivity and expanding margins. The company is generating strong free cash flow and is positioned to invest in innovation and strategic initiatives. This termination allows Flowserve to focus on its independent growth prospects and long-term value creation for shareholders.
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