Chart Industries Divests Roots Business To Ingersoll Rand For $300M

Chart Industries Inc GTLS has signed a definitive agreement to sell its Roots business to Ingersoll Rand Inc IR. The transaction value totals $300 million and is expected to close in the third quarter 2023.

Roots is a provider of low-pressure compression and vacuum technologies. As part of the transaction, Ingersoll Rand will assume ownership of the Connersville, Indiana manufacturing facility, which is dedicated to Roots products, and retain about 300 team members.

GTLS held cash and equivalents of $169.4 million as of March 31, 2023.

Outlook: GTLS also reiterated its full-year 2023 anticipated outlook for revenue, adjusted EBITDA, adjusted earnings per share, adjusted free cash flow and operational cash flow available for debt paydown, as well as 2024 adjusted EBITDA outlook for $1.3 billion.

The Roots business will be treated for accounting purposes as assets held for sale effective as of March 17, 2023, through the close of the transaction.

"We are excited to have executed a definitive agreement in the second quarter 2023 to sell Roots, which is another key step in accelerating our deleveraging plan while simultaneously allowing us to focus on our core strategic solution offering and integration efforts," said CEO and President Jill Evanko.

Price Action: GTLS shares are trading higher by 0.59% at $132.26 in premarket on the last check Monday.