Exhibit 99.1
Chart Industries completes the sale of its Roots™ business to Ingersoll Rand
Atlanta, Georgia (USA), August 18, 2023 – Chart Industries, Inc. (NYSE: GTLS) (“Chart”) announced that today it has closed its sale of the Roots™ business (“Roots”) to Ingersoll Rand Inc. (NYSE: IR) (“Ingersoll Rand”) for an all-cash purchase price of $300 million, representing an attractive low-teens adjusted EBITDA multiple. The proceeds from the sale are being used for debt paydown.
Roots is a leading provider of low-pressure compression and vacuum technologies. As part of the transaction, Ingersoll Rand assumed ownership of the Connersville, Indiana (USA) manufacturing facility and is retaining approximately 300 team members.
“The completion of the sale of Roots™ to Ingersoll Rand, a proven strategic partner to us, is a key step in the acceleration of our deleveraging plan,” stated Jill Evanko, Chart’s CEO and President. “This is one of many steps that allow us to anticipate reaching our target 2.5 to 2.9 net leverage ratio by the middle of 2024 as well as focusing on achieving our year-one annualized cost and commercial synergy targets of $175 million and $150 million, respectively.”
The Roots business was moved to discontinued operations effective as of March 17, 2023.
Chart’s banking covenant net leverage ratio as of June 30, 2023 was 3.86X, or 3.72X, on a pro forma basis after giving effect to the Roots™ divestiture and assuming approximately $80 million of cash from the previously announced Cofimco divestiture had been available for debt paydown.
Advisors
BofA Securities served as exclusive financial advisor and Winston & Strawn LLP is serving as legal counsel to Chart. Citi served as financial advisor and Simpson Thacher & Bartlett LLP is serving as legal counsel to Ingersoll Rand.
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 Chart’s business plans, including anticipated acquisitions, future cost synergies and efficiency savings, net leverage ratios, objectives, future orders, revenue, margins, earnings, performance or outlook, business or industry trends 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,” “indicators”, “outlook,” “guidance,” “continue,” “target,” or the negative of such terms or comparable terminology.
