8-KMaterial AgreementsRegulation FDExhibits & Filings

Baker Hughes Co 8-K Report, Material Agreement (Jul 29, 2025)

Filed July 29, 2025For Securities:BKR

Summary

Baker Hughes Company (BKR) has announced a significant strategic move, entering into a definitive Agreement and Plan of Merger to acquire Chart Industries, Inc. (Chart) for $210.00 per share in cash. This all-cash transaction, valued at approximately $14.9 billion if fully drawn on the bridge facility, aims to combine Baker Hughes's strong position in the energy technology sector with Chart's expertise in industrial gas equipment and services. The acquisition is subject to customary closing conditions, including Chart shareholder approval and regulatory clearances, such as Hart-Scott-Rodino antitrust review. Baker Hughes has secured committed financing for the transaction through a 364-day bridge loan facility, with plans to seek permanent financing. The company highlights the potential for synergies and operational efficiencies, though investors should be aware of the inherent risks in integrating such a large acquisition, including financing, regulatory hurdles, and potential disruptions.

Key Highlights

  • 1Baker Hughes to acquire Chart Industries for $210.00 per share in an all-cash transaction.
  • 2The total deal value, based on the potential bridge financing, is estimated at approximately $14.9 billion.
  • 3The acquisition is structured as a merger where Chart will survive as an indirect wholly owned subsidiary of Baker Hughes.
  • 4Key closing conditions include Chart shareholder approval and satisfaction of antitrust and regulatory requirements.
  • 5Baker Hughes has secured a $14.9 billion bridge loan commitment to finance the acquisition, with plans to pursue permanent financing.
  • 6The Merger Agreement includes customary provisions for termination fees, with Baker Hughes potentially paying $500 million under specific circumstances related to regulatory or legal impediments, and Chart potentially paying $250 million if they breach the agreement or accept a superior proposal.
  • 7Baker Hughes will also cover a $258 million termination payment to Flowserve related to Chart's prior merger agreement.

Frequently Asked Questions

While not explicitly detailed in this 8-K, the acquisition is expected to enhance Baker Hughes's offerings in the industrial gas and equipment sector, potentially leading to synergies and operational efficiencies by integrating Chart's business into Baker Hughes's broader energy technology portfolio.

Baker Hughes has secured a commitment for a $14.9 billion senior unsecured 364-day bridge loan facility to fund the acquisition and related expenses. The company also intends to seek permanent financing through senior unsecured debt securities and term loans prior to the closing of the transaction.

The completion of the merger is contingent upon several factors, including the approval of the merger agreement by Chart Industries' shareholders, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, receipt of other necessary foreign antitrust and regulatory clearances, the absence of any governmental restraints prohibiting the merger, and the satisfaction of representations, warranties, and covenants by both parties, among other conditions. The transaction is not subject to a financing condition.

The Merger Agreement outlines termination fees. If the merger is not completed by the Outside Date due to certain regulatory or legal restraints, Baker Hughes may be required to pay Chart a termination fee of $500 million. Conversely, Chart may be required to pay Baker Hughes a termination fee of $250 million under specific circumstances, such as terminating the agreement to enter into a superior proposal or breaching covenants. Additionally, Baker Hughes is responsible for a $258 million payment related to the termination of Chart's previous merger agreement with Flowserve, which will be reimbursed by Chart under certain termination scenarios.