Howden, A Chart Industries Company

Background

Founded in 1853 by James Howden, Howden has established itself as a leading global provider of mission-critical air and gas handling solutions. With a heritage spanning over 160 years, the company focuses on enhancing safety, efficiency, and environmental sustainability across various industrial processes. In 2023, Howden was acquired by Chart Industries, Inc., a move that expanded Chart's offerings in clean energy and industrial gas markets.

Key Strategic Focus

Howden specializes in designing and manufacturing a comprehensive range of rotating equipment, including compressors, blowers, fans, rotary heaters, and steam turbines. These products serve diverse industries such as power generation, oil and gas, mining, and wastewater treatment. The company's strategic objectives include advancing sustainable technologies, optimizing customer processes, and expanding its global footprint to meet the evolving demands of industrial markets.

Financials and Funding

In November 2022, KPS Capital Partners announced the sale of Howden to Chart Industries for $4.4 billion. This acquisition was completed in 2023, positioning Howden as a key component of Chart's portfolio. The combined backlog of Chart and Howden was approximately $3.7 billion as of September 30, 2022, supporting a near-term double-digit growth outlook.

Technological Platform and Innovation

Howden's technological prowess is evident in its diverse product portfolio and innovative solutions:

Howden Uptime: A digital solution for equipment performance optimization that integrates sensor data from rotating equipment, analyzing operational efficiency and environmental responsiveness.

Pumpsim: A 3D software package that simulates the pumping and transportation of liquids and slurries through piping systems, enhancing design and operational efficiency.

Ventsim: A software suite enabling the design and simulation of underground mine and tunnel ventilation systems, ensuring safe and efficient operations.

Leadership Team

As of the latest available information, Ross Shuster serves as the Chief Executive Officer of Howden. Under his leadership, the company has undergone significant transformation, focusing on innovation and expansion into sustainability-linked end-markets.

Competitor Profile

Market Insights and Dynamics: The air and gas handling equipment industry is characterized by steady growth, driven by increasing demands for energy efficiency and environmental sustainability. Howden's integration into Chart Industries enhances its competitive position in this evolving market.

Competitor Analysis: Key competitors include companies like ebm-papst Mulfingen, TROX, Greenheck, Revcor, and Metal Industries. These firms offer overlapping products and services, competing in various industrial sectors.

Strategic Collaborations and Partnerships

Prior to its acquisition, Howden collaborated with Chart Industries on advanced hydrogen solutions, integrating Howden's gas compression systems into Chart's hydrogen offerings. This partnership aimed to provide cost-effective, standardized solutions to accelerate the commercialization of renewable hydrogen projects.

Operational Insights

The acquisition by Chart Industries has positioned Howden to leverage combined resources, enhancing its ability to deliver comprehensive solutions across the clean energy and industrial gas markets. The integration is expected to yield significant cost and revenue synergies, bolstering Howden's market position.

Strategic Opportunities and Future Directions

Looking ahead, Howden is poised to capitalize on global trends such as the energy transition, decarbonization, and electrification. The company's focus on innovation and sustainability aligns with these trends, positioning it to meet the evolving needs of its diverse customer base.