Chart Industries To Acquire SeQual Technologies

CLEVELAND, Dec. 2, 2010 (GLOBE NEWSWIRE) -- Chart Industries, Inc. (Nasdaq:GTLS) announced that its wholly-owned subsidiary, CAIRE Inc., which operates under its BioMedical segment, has entered into a definitive agreement to acquire SeQual Technologies Inc. ("SeQual") for approximately $40 million, plus the possibility of up to $20 million of additional future payments contingent on SeQual's financial performance over a two-year period post-closing. Other financial terms of the all-cash transaction were not disclosed.

SeQual, a privately held company headquartered in San Diego, California, develops, manufactures and markets products for medical, military, industrial and commercial applications utilizing its proprietary pressure swing adsorption (PSA) technology for air separation. SeQual focuses on medical oxygen concentrators -- devices that separate oxygen from air to provide supplemental breathing oxygen to individuals with chronic lung disease.  SeQual's line of medical oxygen concentrators ranges from its award-winning, 3 LPM (liters-per-minute) continuous flow portable Eclipse 3 ^TM oxygen system to its IntegraTEN ^TM high-capacity (10 LPM) bedside unit. SeQual's annual sales are approximately $36 million.

"The acquisition of SeQual is an excellent strategic fit for us. It expands our respiratory product offering with a leading portable, non-delivery oxygen concentrator," said Sam Thomas, Chairman, CEO and President of Chart Industries.

"This transaction combines SeQual's technology and patient-focused product development capabilities with our global marketing, distribution and operating expertise," stated Steve Shaw, President of Chart BioMedical.  "We expect to integrate the majority of SeQual's operations during 2011." 

Ron Richard, SeQual's Chief Executive Officer, commented, "We are very excited about the merger with Chart as it allows us to take advantage of CAIRE's leading respiratory global presence and manufacturing capabilities and to expand our portable oxygen concentrator sales in new and existing markets."

Completion of the transaction, subject to customary closing conditions, is expected by the end of January 2011. This acquisition is expected to be accretive to Chart's 2011 earnings, excluding restructuring costs, and if future contingent payments are earned, the accretion to Chart's earnings would be expected to increase.