Baker Hughes announced a $10 billion cross‑border bond sale that will fund the company’s pending $13.6 billion acquisition of Chart Industries, a deal expected to close in mid‑2026.
The acquisition is part of Baker Hughes’ strategy to shift toward higher‑margin industrial markets. Chart Industries brings cryogenic equipment, hydrogen, and carbon‑capture capabilities that complement Baker Hughes’ Industrial Energy Technology portfolio and support the company’s expansion into data‑center cooling and clean‑energy solutions.
Baker Hughes currently carries $5.4 billion of long‑term debt, representing 24.3% of its capital structure as of December 31, 2025. The new bond issuance will increase leverage and raise the debt‑to‑EBITDA ratio, prompting S&P Global Ratings to place the notes on CreditWatch with a negative outlook and to anticipate a one‑notch downgrade of the issuer’s credit rating.
The company expects to realize $325 million in annualized cost synergies by the end of year three, driven by manufacturing scale, supply‑chain consolidation, and optimization of SG&A and R&D functions. Successful integration will be critical to achieving these savings and mitigating execution risk.
Investors have taken a cautious view of the transaction, reflecting concerns about the increased debt load and the potential impact on Baker Hughes’ credit profile.
"This acquisition is a milestone for Baker Hughes and a testament to our strong financial execution and strategic focus as we continue to define our position as a leading energy and industrial technology company," said CEO Lorenzo Simonelli. "Their products and services are highly complementary to our offerings and strongly aligned with our intent to deliver distinctive and efficient end‑to‑end lifecycle solutions for our customers across their most critical applications."
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