Why Flowserve Corporation (FLS) Crashed On Wednesday
Flowserve dropped its share prices by 6.16 percent on Wednesday to end at $47.41 apiece following plans to merge with Chart Industries, Inc. (NYSE: GTLS) for a transaction value of $19 billion.
Under the agreement, Chart shareholders will receive 3.165 shares of Flowserve Corporation (NYSE:FLS) common stock for each share of Chart common stock owned.
A group of industrial workers in coveralls operating a large scale pump system in a factory.
Following the closing of the transaction, Chart shareholders will own approximately 53.5 percent and Flowserve Corporation (NYSE:FLS) shareholders will own approximately 46.5 percent of the merger company, on a fully diluted basis.
'The merger will create a differentiated leader with the scale and resilience to meet the significant demand for comprehensive industrial process technologies and services,' said Flowserve Corporation (NYSE:FLS) President and CEO Scott Rowe.
'Chart's and Flowserve's highly complementary businesses will strengthen our ability to meet our customers' needs, empower innovation and drive long-term, sustainable growth,' he added.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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