Air Liquide (Paris, France; www.airliquide.com) has reached an agreement to acquire Airgas, Inc. (Radnor, Pa.; www.airgas.com) in a game-changing combination that strengthens Air Liquide’s global leadership position, offers new opportunities to Airgas’ customers and delivers significant value to shareholders.
Combining Air Liquide and Airgas will bring together two highly complementary businesses, and it builds on Air Liquide’s longstanding track record of successfully operating in the U.S. and will benefit from Airgas’ national presence and its more than 1 million customers in the U.S., as well as its leading customer-facing platform including e-commerce and telesales capabilities.
Airgas shareholders will receive $143 per share in cash for all outstanding shares of Airgas, representing a total enterprise value of $13.4 billion (€12.5 billion at current exchange rates) on a fully diluted basis and including the assumption of Airgas debt.
In the transaction, Airgas will become a wholly owned subsidiary of Air Liquide.
Benoît Potier, Chairman and CEO of Air Liquide, said: “This combination offers significant benefits for all of our stakeholders due to the highly complementary nature of the two businesses. It also advances Air Liquide’s vision to lead the industry and deliver long-term performance while acting responsibly. This acquisition increases our geographic reach in the resilient U.S. market, and offers continuous growth opportunities. Airgas is the industry leader in U.S. packaged gases with a customer-centric organization and we are confident in our ability to successfully combine operations. Airgas is a unique partner, and together we will continue to advance our strategy based on profitable growth and innovation over the long-term.”
He added, “We have the highest respect for Airgas, its organization, its employees and its stakeholders, as well as for what they have achieved over more than 30 years. We look forward to working with their teams as we move to complete the transaction and combine both businesses.”
Peter McCausland, Executive Chairman of Airgas, said: “This transaction is compelling for our shareholders, arising from the persistent execution of our business strategy for more than three decades. Air Liquide’s long-term vision and strong heritage in the U.S. make it the right fit for our valued customers, and the combination creates significant opportunities for the talented employees of both companies. Airgas customers and employees will benefit from Air Liquide’s unrivalled global footprint and strength in technology, innovation and operational efficiency, while Airgas is ready to bring the entrepreneurial culture and packaged gas excellence that have driven our success to date. We are excited about the prospects of integrating these two businesses to create the largest industrial gas company in the world. We look forward to working closely with Air Liquide to complete the transaction and achieve a smooth transition.”