Flowserve Trading Volume Drops to $309 Million as Chart Industries Merger Announced

On June 5, 2025, Flowserve's trading volume reached $309 million, marking a 31.33% decrease from the previous day. The stock price of Flowserve (FLS) fell by 0.49%, marking the second consecutive day of decline, with a total decrease of 6.61% over the past two days.

Chart Industries and Flowserve have announced a transformative all-stock merger, valuing the combined entity at approximately $19 billion. Under the agreement, Chart Industries shareholders will receive 3.165 shares of Flowserve for each Chart Industries share, resulting in Chart Industries owners holding roughly 53.5% of the pro forma company and Flowserve shareholders holding 46.5%. The transaction is expected to close in the fourth quarter of 2025.

The merger aims to capitalize on robust demand for industrial cooling and fluid-handling solutions driven by investments in artificial intelligence, data centers, and broader infrastructure projects. The combined company is expected to generate approximately $8.8 billion in annual revenue, with 42% coming from high-margin aftermarket services, providing a more resilient and predictable cash flow profile.

Management targets $300 million in annual cost synergies within three years, driven by procurement savings, operational efficiencies, and the elimination of duplicate public company costs. The merger enhances scale and diversification, positioning the new entity to capture growth in high-demand sectors like AI, data centers, clean energy, hydrogen, LNG, and industrial gases, while maintaining a global installed base of over 5.5 million assets in more than 50 countries.

Despite the long-term potential, both Chart Industries and Flowserve shares dropped on the merger announcement, reflecting investor concerns about integration risks, potential dilution, and the challenges of merging two sizable organizations. The combined company will operate under a new, as-yet-unannounced brand, which may create short-term confusion for customers and partners.