Chart Industries Inc. has announced that it has signed a definitive agreement to divest its cryobiological products business (MVE Biological Products) within the Distribution & Storage Western Hemisphere (D&S West) segment to Cryoport Inc. for $320 million in cash.

 

The sale is expected to close early in Q4FY20, following the satisfaction of customary closing conditions, including regulatory requirements.

 

The strategic decision to divest the cryobiological products business reflects Chart’s strategy and capital allocation approach to focus on its core capabilities and offerings while continuing to expand its presence in clean energy applications including LNG, hydrogen, biogas/biomethane, carbon capture and other renewable fuelling sources.

 

This divestiture follows the 2018 sale of the company’s oxygen-related products business, which at the time was a portion of the previous BioMedical segment.

 

Chart confirmed that its medical oxygen related products for critical care applications such as COVID-19 will remain with the Chart business, as they are bulk, microbulk and mobile equipment that serve various industrial gas applications in addition to medical grade oxygen.

 

“This is a logical next step in our strategy to stay disciplined in our core cryogenic businesses that share common customers, technologies and end markets. Having a strategic life sciences buyer like Cryoport will provide a platform for the cryobiological products business to grow in medical and animal breeding spaces that are non-core to Chart,” said Jill Evanko, Chart’s President and Chief Executive Officer. “We will initially utilise the proceeds from the sale to pay down debt and subsequently continue to expand our presence, both organically and inorganically, into our high-growth focus areas, including hydrogen, carbon capture and other specialty markets.”

 

The company has booked orders with 84 new customers in the third quarter 2020 to date, bringing year-to-date new customers to 344. It also signed an MoU with a major industrial gas customer to develop specific hydrogen applications in Asia.