Chart Industries: Howden’s Integration Is Off to a Fast Start

Chart Industries’ deal to acquire Howden closed on March 17. Since the closing date, Chart has announced several early successes on the commercial and cost synergies front, including the recent announcement of its expansion of the Hydrexia partnership. The Hydrexia partnership, originally with Howden, now includes Chart products and is specifically focused on delivering hydrogen refueling stations in Australia, New Zealand and Southeast Asia. The partnership, which has delivered over 40 stations already, now also benefits from Chart’s experience in obtaining regional hydrogen certifications for equipment. We think this is a good example of the positive outcomes of the deal for a newly expanded Chart. The expanded partnership is not material enough to move our $165 per share fair value estimate or narrow moat rating for Chart.