GTLS - Chart Industries Divests American Fan to Fairbanks Morse Defense | Benzinga
ATLANTA, Oct. 27, 2023 (GLOBE NEWSWIRE) -- Chart Industries, Inc. (NYSE:GTLS) ("Chart") announced that it simultaneously signed and closed on the divestiture of its American Fan business to Fairbanks Morse Defense (FMD), a portfolio company of Arcline Investment Management, for an all-cash purchase price of $111 million yesterday. The purchase price represents multiples in line with prior Chart transactions. American Fan designs, manufactures, and services high-performance axial and centrifugal fans for enduring U.S. Navy, Military Sealift Command, and U.S. Coast Guard platforms and specialty industrial applications. Cash proceeds have been used for debt paydown. The business operates in a dedicated facility in Fairfield, Ohio, which was included in the transaction. All employees of American Fan will be offered the opportunity to continue employment with FMD.
"This transaction brings our 2023 proceeds from divestitures to approximately $500 million for debt reduction, as originally anticipated and within seven months following the acquisition of Howden," stated Jill Evanko, Chart CEO and President. "These actions allow us to accelerate our deleveraging plan, supporting the anticipated achievement of our target net leverage ratio range of 2.5 to 2.9 by mid-2024."
"Now more than ever, Fairbanks Morse Defense remains committed to expanding our growing array of OEM equipment to ensure that our fleet is always mission-ready," said George Whittier, FMD CEO. "American Fan has a long track record of delivering high-quality products to the U.S. Navy, and its addition to our portfolio strengthens our ability to meet the continually evolving needs of our military and marine customers."
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