Baker Hughes closes $13.6B Chart acquisition to expand industrial portfolio

Baker Hughes completed its $13.6 billion acquisition of Chart Industries on Thursday, adding a third operating segment as the energy technology company pushes deeper into industrial markets beyond traditional oil and gas.

"Chart's thermal management solutions bring complementary capabilities and aftermarket service offerings that accelerate our portfolio strategy," said Lorenzo Simonelli, chairman and chief executive officer at Baker Hughes.

Chart reported $4.3 billion in revenue for fiscal 2025 and serves customers across more than 50 countries in sectors including gas infrastructure, nuclear, data centers, carbon capture and storage, space and geothermal. The deal, which received European Union antitrust clearance after Baker Hughes agreed to divest certain Chart operations, is expected to generate $325 million in annualized cost synergies within three years, with additional commercial upside.

The acquisition marks a major milestone in Baker Hughes' transformation from an oilfield services provider into an industrialized energy solutions company. By folding Chart's air and gas handling, thermal management and lifecycle services into its portfolio, Baker Hughes gains exposure to high-growth industrial end-markets while targeting a net leverage range of 1.0x to 1.5x within 24 months.

Jim Apostolides, Baker Hughes' chief infrastructure and performance officer, has been appointed senior vice president to lead the Chart segment. He has led the integration program since July 2025 and previously served as senior vice president of enterprise operational excellence since 2020. "Jim's business rigor, demonstrated through decades of global supply chain experience and operational leadership of large complex facilities around the world, makes him well-suited to lead implementation of the Baker Hughes Business System within Chart," Simonelli said.

The company has launched an integration program focused on harmonizing product and technology platforms, engineering and commercial practices, and lifecycle and digital services. Early priorities include supply chain consolidation, functional support alignment and manufacturing optimization.

Chart shares traded near their 52-week high of $209.96 on Thursday, giving the company a market capitalization of about $10.05 billion. The stock has been flagged by some valuation models as overvalued relative to fair value, though analysts project Chart will return to profitability this fiscal year with earnings per share of $7.57, compared with a loss of $1.03 in the trailing 12 months.

The deal is the largest in Baker Hughes' recent history and follows a pattern of consolidation in the industrial gas and energy equipment space. Rivals including Siemens Energy and Honeywell have pursued similar bolt-on acquisitions to broaden their technology portfolios and capture recurring service revenue from data center cooling, carbon capture and liquefied natural gas infrastructure — markets where Chart holds established positions.

Baker Hughes' board will continue evaluating the company's strategic direction based on integration progress and operational execution. The company has said it remains committed to disciplined capital allocation, with debt reduction a priority over the next two years.

This article is for informational purposes only and does not constitute investment advice.