On November 09, 2022, Chart Industries, Inc. (NYSE: GTLS) announced that it has signed a definitive agreement to acquire Howden, a leading global provider of mission-critical air and gas handling products and services, from affiliates of KPS Capital Partners, LP.

In relation to the Deal, Chart reported the following information:

• The purchase price is $4.4 billion and will be funded through a combination of cash and shares of a newly created class of preferred stock.

• The acquisition will result in estimated combined revenue of approximately $3.4 billion based on the trailing twelve months as of August 31, 2022.

• The purchase price represents 12.9x Howden’s adjusted EBITDA for the 12 months ended August 31, 2022, or 8.5x including estimated annual cost synergies of $175 million to be achieved in the first 12 months of ownership ($250 million annual cost synergies by year three).

Taking valuation and the deal funding approach into account, GTLS Investors have grounds to suspect that the Company and its management act not in the best interests of current shareholders.