Home » Airgas to Buy Linde's U.S. Bulk Gas Business for $495M
Airgas to Buy Linde's U.S. Bulk Gas Business for $495M
November 22, 2006
Airgas, Inc., Radnor, PA, has agreed to buy the U.S. bulk gas business that Linde AG is required to divest after its acquisition of The BOC Group. Airgas will pay $495 million in cash for eight air separation units and related bulk gas business, which generated $154 million in revenues at the end of the year Dec. 31, 2005.
The bulk gas divestiture will comply with one of the conditions imposed by the U.S. Federal Trade Commission when it approved Linde's acquisition of BOC, which was completed on September 5, 2006.
Revenues for the nine month period ended Sept. 30, 2006, increased 10% to $126 million.
The eight ASU plants to be acquired are located in Canton and Dayton, OH; Madison and Waukesha, WI; Carrolton and Jefferson, GA; Bozrah, CT; and Rock Hill, SC. Airgas will manage the acquired ASUs as part of a new business unit, Airgas Merchant Gases, which will centrally manage production, sourcing, applications support and logistics, working closely with bulk gas sales specialists within the Airgas regional companies. Airgas Merchant Gases will eventually manage existing Airgas ASUs and the planned one in Carrollton, KY.
Most of the plants are in the Eastern U.S.
The acquired bulk business will include sales of nitrogen, oxygen, and argon produced at the plants, as well as helium, hydrogen and carbon dioxide bulk sales to the plants' customers. The acquisition will include delivery vehicles, bulk tanks, and related infrastructure, as well as sales, operations, and engineering staff who support the business.