Chart Industries Acquires Worthington Industries’ Cryogenic Trailer and Hydrogen Trailer Business

Rhea-AI Summary

Chart Industries has acquired the cryogenic and hydrogen trailer assets from Worthington Industries, enhancing its capabilities and market position. The acquisition includes a 300,000 square foot facility in Theodore, Alabama, adding significant manufacturing capacity for LNG products. CEO Jill Evanko highlighted expected hydrogen-related revenue from the facility in 2021, projected to be between $15 to $30 million. The strategic location near the Port of Mobile will improve service and leasing options for North and Central American customers.

Positive

• Acquisition enhances manufacturing capacity for LNG products.
• Expected hydrogen-related revenue from the facility projected between $15 to $30 million in 2021.
• Strategically located near the Port of Mobile to improve logistics and service options.

Negative

• None.

ATLANTA, Oct. 13, 2020 (GLOBE NEWSWIRE) -- Chart Industries, Inc. (“Chart”) (NASDAQ: GTLS) today completed the acquisition of the Theodore, Alabama cryogenic trailer and hydrogen trailer (transport) assets of Worthington Industries, Inc. (NYSE: WOR).  This acquisition includes ownership of the Theodore, Alabama manufacturing site, all trailer-related intellectual property, manufacturing capabilities, equipment and repair backlog. The facility has approximately 300,000 square feet under roof adjacent to the Port of Mobile, and the associated employees will join the Chart team.  This acquisition will produce strong synergies by combining Chart’s deep knowledge of cryogenics and liquid hydrogen storage and handling with the Theodore operation’s expertise and experience in the packaging and assembly of liquid hydrogen trailers. The addition of the trailer business to Chart’s hydrogen equipment and solution offering expands our mobile equipment to larger sized transports and brings another location already certified by significant hydrogen customers.   Expected Chart hydrogen-related revenue from this facility in 2021 is $15 to $20 million with upside potential to $30 million in 2021.

“Owning this strategically located site near the Port of Mobile will grow our manufacturing capacity for Chart’s LNG products including tender cars for locomotive fueling and onboard storage tanks for marine fueling applications and expand our repair, service and leasing footprint (plenty of products to roll into this site (pun intended!)),” said Jill Evanko, Chart’s CEO & President.   “In particular, we will be able to provide expanded options for our North, Latin and Central American customers, including shorter lead-times of our ISO containers for LNG built in our Changzhou, China facility and stored onsite in Alabama.”  

Winston & Strawn served as legal advisor to Chart on the transaction.

About Chart Industries, Inc.

Chart Industries, Inc. is a leading independent global manufacturer of highly engineered equipment servicing multiple applications in the Energy and Industrial Gas markets.  Our unique product portfolio is used in every phase of the liquid gas supply chain, including upfront engineering, service and repair.  Being at the forefront of the clean energy transition, Chart is a leading provider of technology, equipment and services related to liquefied natural gas, hydrogen, biogas and CO2 Capture amongst other applications. We are committed to excellence in environmental, social and corporate governance (ESG) issues both for our company as well as our customers.  With over 25 global locations from the United States to Asia, Australia, India, Europe and South America, we maintain accountability and transparency to our team members, suppliers, customers and communities. To learn more, visit www.Chartindustries.com.

FORWARD-LOOKING STATEMENTS

Certain statements made in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include statements concerning the Company’s business plans, including statements regarding completed acquisitions, cost synergies and efficiency savings, objectives, future orders, revenues, margins, earnings or performance, liquidity and cash flow, capital expenditures, business trends, governmental initiatives, including executive orders and other information that is not historical in nature.  Forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "expects," "anticipates," "believes," "projects," "forecasts," “outlook,” “guidance,” "continue," “target,” or the negative of such terms or comparable terminology.

Forward-looking statements contained in this press release or in other statements made by the Company are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control, that could cause the Company's actual results to differ materially from those matters expressed or implied by forward-looking statements.  Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements include: the Company’s ability to successfully integrate recent acquisitions and achieve the anticipated revenue, earnings, accretion and other benefits from these acquisitions; risks relating to the recent outbreak and continued uncertainty associated with the coronavirus (COVID-19) and the other factors discussed in Item 1A (Risk Factors) in the Company’s most recent Annual Report on Form 10-K filed with the SEC and Quarterly Reports on Form 10-Q, which should be reviewed carefully.  The Company undertakes no obligation to update or revise any forward-looking statement.

For more information, click here:

http://ir.chartindustries.com/ 

Investor Relations Contact:

Wade Suki, CFA

Director of Investor Relations

832-524-7489

wade.suki@chartindustries.com

FAQ

What assets did Chart Industries acquire from Worthington Industries?

Chart Industries acquired cryogenic and hydrogen trailer assets, including a manufacturing facility and related intellectual property.

What is the projected revenue from the new facility in 2021?

The projected revenue from the facility is between $15 to $30 million in 2021.

How does the acquisition benefit Chart Industries?

It expands Chart's manufacturing capacity for LNG products and enhances its offerings in the hydrogen market.

Where is the new manufacturing facility located?

The facility is located in Theodore, Alabama, near the Port of Mobile.

What types of products will be manufactured at the new facility?

The facility will produce LNG products, including tender cars for locomotive fueling and onboard storage tanks for marine applications.