Chart Industries (GTLS) has a very long history of buying and selling divisions. The latest strategy has been to focus more on aspects of natural gas and natural gas liquids processing and handling. But management has always been aware of pricing.
Therefore, if a diversification strategy appears too pricey, then management will switch to the bargain way to diversify. Interestingly, management announced the intent to exit some of the healthcare and life science-related business. Cryoport (CYRX) purchased the biological business of Chart for $320 million. The sales price was nearly 4 times revenue.
Source: Chart Industries Investor Presentation August 25, 2020
For the company and its related businesses, that is a tremendous sales price. Chart has rarely, if ever paid that kind of premium for an acquisition. This deal knocks more than half of the long-term debt from the balance sheet and enables management to continue its hunt for more