Heat Treat Industry News
February 15, 2010
Air Products makes offer to acquire Airgas
Industrial gas distributor rejects requests to discuss deal
The offer was made in a letter to Airgas' board of directors after the CEOs of the two companies discussed Air Products' interest in acquiring Airgas and after Air Products made two written offers, and these offers and Air Products' requests to discuss them were rejected by Airgas.
Headquartered in Pennsylvania, the combined company would be the largest industrial gas company in North America and one of the largest in the world. The total value of the transaction is approximately $7 billion.
John E. McGlade, chairman, president and CEO at Air Products, said in a press release, "This is an extremely compelling transaction with undeniable strategic and industrial logic that would benefit shareholders, customers and employees of both companies. Bringing together these two highly complementary companies would create substantial value. We highly value the talented operating team at Airgas, and believe they would benefit greatly from the expanded opportunities and resources available to them as part of a larger and stronger global U.S. company with significantly greater long-term growth prospects than a stand-alone Airgas."
With $4.3 billion in annual sales, Airgas is the fourth largest company on Industrial Distribution magazine's Big 50 list for 2009. Airgas has headquarters in Radnor, Pa.
In December, Airgas completed the acquisition of Fitch Industrial & Welding Supply, an industrial gas and welding supplies distributor.
Air Products' lines consist of atmospheric gases, process and specialty gases, performance materials and equipment and services. In fiscal 2009, the company had revenues of $8.3 billion, operations in more than 40 countries and 18,900 employees.
Source: Susan Avery -- Purchasing.com, 2/5/2010 12:06:01 PM
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