NEW YORK, November 11, 2022 /PRNewswire/ — KPS Capital Partners, LP (“KPS”) announced today that it has signed a definitive agreement to sell its holding company, Howden (the “Company”), to Chart Industries, Inc. ( “Chart Industries” or “Chart”, NYSE: GTLS), a Ball Ground, Georgia-based manufacturer of high-tech equipment serving multiple applications in the clean energy and industrial gas markets, for 4 .4 billion dollars.
Howden is one of the world’s leading providers of air and gas handling solutions that ensure the safety, efficiency and environmental sustainability of critical processes in a wide range of attractive and rapidly growing industrial markets. Howden manufactures a full line of rotary equipment products including compressors, blowers, fans, rotary heaters and steam turbines. The company’s products enable the vital processes of its customers to progress towards a more sustainable world. Based in Renfrew, Scotland, Howden employs more than 6,500 people in 35 countries, including more than 750 engineers.
KPS acquired Howden in 2019 from Colfax Corporation in a highly complex global corporate spin-off transaction. KPS has assembled an accomplished management team, led by CEO Ross Shuster, to drive the transformation of Howden into a large-scale, leading global air and gas processing platform. In just over three years of ownership, KPS, in partnership with management, has successfully transformed Howden into a fully independent, fast-growing, innovation-driven company.
KPS and the Howden management team implemented an aggressive growth strategy that repositioned Howden into end markets and sustainability-related applications. Under KPS’s leadership, Howden has integrated or expanded its presence in end markets that are critical to the future of the industrial economy, including hydrogen compression, carbon capture, utilization and storage, wastewater treatment and energy recovery. KPS has made significant investments in the Howden platform, including making seven highly synergistic complementary acquisitions, supporting new product development and technology innovation, investing in production capacity expansion and making improvements operational. Through these actions, Howden achieved record levels of orders, revenues and profitability under KPS leadership.
Raquel Palm Treeco-director of KPS, said, “Howden exemplifies KPS’ investment strategy of finding value where others don’t, buying wisely and improving businesses for decades. years, economic and business cycles, geographies and business sectors.
We are proud of the extraordinary transformation of Howden under our control. Howden demonstrates our ability to partner with world-class management teams to build world-leading manufacturing companies. The company’s success is a direct result of KPS’s commitment and investment in Howden’s growth and organic strategy initiatives and its people. The company is well-positioned to continue its growth and leadership in the industry under Chart ownership.
We congratulate and thank Ross Shuster, the President and CEO of Howden, and the company’s management team, for their strategic vision and outstanding performance, which have enabled the company to grow significantly and create value under our control. Chart recognized Howden’s remarkable transformation, which was made possible by the hard work and dedication of all Howden employees. We are excited about the future of the combined Chart and Howden business. We believe there is huge business logic to combining the two companies and that this combination brings significant value to all stakeholders. »
Ross Shuster, President and CEO of Howden, added: “Our partnership with KPS has been extraordinary. KPS has recognized the underlying potential of Howden’s business and has supported the Howden team through significant business transformation over the past three years. Today, Howden has a stronger team, very robust processes and a superior financial profile. Additionally, Howden’s business and growth strategies are aligned with a number of global macro-trends, including energy transition, industrial decarbonization and electrification. The strength of the company has been recognized by Chart Industries, and Howden will continue its positive trajectory as an integral part of Chart.
Howden and Chart have worked together in the recent past, including on a handful of key projects for mutual clients. In 2021, Howden signed a memorandum of understanding which resulted in cooperation on a number of groundbreaking projects, including the construction of a new hydrogen liquefaction plant in Canada. The success of our relationship gives me great confidence that Chart’s acquisition of Howden will enable the combined company to offer customers a broader set of innovations, solutions and services. »
Morgan Securities LLC, Barclays and Evercore served as financial advisors and Paul Weiss, Rifkind, Wharton & Garrison LLP providing legal counsel to KPS and Howden. Completion of the transaction is subject to customary closing conditions and approvals.
About Howden
Howden is one of the world’s leading suppliers of air and gas treatment products and services. The company’s products enable its customers’ life processes to advance a more sustainable world. Based in Renfrew, Scotland, Howden has over 160 years of heritage as a world-class application engineering and manufacturing company, with a presence in 35 countries. Howden manufactures fans, compressors, heat exchangers, steam turbines and other highly engineered air and gas handling equipment, and provides service and support to customers worldwide in end markets and highly diversified geographical areas. For more information visit www.howden.com
About KPS Capital Partners, LP
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $13.6 billion in assets under management (as of 30 June 2022). For more than 30 years, KPS partners have been fully dedicated to achieving significant capital appreciation by making majority capital investments in manufacturing and industrial companies within various industries, including commodities. , branded consumer goods, healthcare and luxury goods, automotive parts, capital goods and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to improve businesses, and has generated investment returns by structurally reducing the strategic position, competitiveness and profitability of its companies. portfolio rather than paying primarily on leverage. KPS Funds portfolio companies currently generate aggregate annual revenue of approximately $21.6 billion, operate 232 manufacturing sites in 27 countries and have approximately 53,000 employees, directly and through joint ventures in worldwide (as of June 30, 2022, pro forma for recent acquisitions and exits). You can find KPS’ investment strategy and a list of its portfolio companies at www.kpsfund.com.
About Chart Industries, Inc.
Chart Industries, Inc. is a leading independent global manufacturer of highly engineered equipment serving multiple applications in the power and industrial gas markets. The company’s unique product portfolio is used in every phase of the liquid gas supply chain, including initial engineering, service and repair. At the forefront of the clean energy transition, Chart is a leading provider of technologies, equipment and services related to liquefied natural gas, hydrogen, biogas and CO2 capture, among other apps. Chart is committed to achieving excellence in environmental, social and corporate governance (ESG) issues, both for its business and for its clients. With over 25 global manufacturing locations, from the United States to China, Australia, India,Europe and South America, Chart upholds accountability and transparency to its team members, suppliers, customers and communities. To find out more, visit the website www.Chartindustries.com.
Forward-looking statements
This press release contains “forward-looking statements,” including statements regarding the successful transaction. Forward-looking statements can generally be received by the use of words such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “plan”, “intend”. ‘, ‘may’, ‘plan’, ‘project’, ‘potential’, ‘seek’, ‘should’, ‘think’, ‘will’ and other similar expressions, or they may use future dates. Forward-looking statements in this document include, but are not limited to, statements regarding the Company’s expectations regarding the completion, timing and anticipated effects of the transaction. These forward-looking statements are subject to assumptions, risks and uncertainties that may change at any time, and readers are therefore cautioned that actual results may differ from those expressed in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to: the occurrence of an event, change or other circumstance that could give rise to the termination of the Definitive Agreement or that could otherwise so that the transactions made therein are not concluded; the Company’s or Chart’s failure to satisfy closing conditions; and other risks and uncertainties. Unless required by law, the Company assumes no obligation to update any forward-looking statements, whether as new information, future developments or otherwise. In this document, all forward-looking statements presented are fully qualified by this cautionary statement.
Statements by managers of portfolio companies
Certain statements regarding KPS made by officers of portfolio companies herein are intended to illustrate KPS’s business relationship with such persons, including with respect to KPS’ facilities as a business partner, rather than KPS’s capabilities or expertise in investment advisory services. The executives of the portfolio companies have not been compensated in connection with making these statements, although they generally receive compensation and investment opportunities commensurate with their roles in the portfolio companies and, in some cases, they are also owners of holding company securities and/or investors in KPS-sponsored vehicles. This remuneration and these investments expose participants to potential conflicts of interest when making the declarations indicated in this document.
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SOURCEKPS Capital Partners, LP