Airgas, Inc., today announced that effective at the close of business June 30, 2007, it has completed the acquisition of Linde Gas USA LLC, and with it most of the U.S. packaged gas business of Linde AG (LIN.DE). Airgas, which first announced plans to acquire the packaged gas operations on March 29, 2007, paid $310 million in cash in the transaction.
The acquisition involved 130 locations in 18 states, including branches, warehouses, packaged gas fill plants, and other operations involved in distributing packaged industrial and specialty gases and related equipment. In 2006, the business generated $346 million in revenue.
“We are pleased to welcome 1,400 associates and the packaged gas customers they serve,” said Airgas Chairman and Chief Executive Officer Peter McCausland. “The packaged gas locations we have acquired fill in our network in a key corridor from Pittsburgh to Chicago, and in other important geographies in the eastern U.S., helping us serve customers more effectively.”
Most associates and locations are joining seven regional companies and National Welders Supply Company, which will soon transition from a joint venture to a wholly owned subsidiary as announced separately. Two specialty gas facilities in Maumee and Valley View, OH, are joining the Airgas Specialty Gases national network, and some corporate functions based in Cleveland, OH, are joining Airgas corporate teams. For more information on the sites and new alignments, go to http://www.airgas.com/documents/pdf/LindePGalignedsites.pdf.
For at least the initial 60 days, the acquired locations will operate under their existing business structure, with the management team reporting to the East Division President Shaun Powers in Cleveland, while Airgas completes systems conversions over the coming months. Until then, customers will see no changes in the way they order, take delivery, or pay for products and service from their current locations.
As previously announced, the transaction excludes Linde’s LifeGas medical gas business, its Spectra Gas rare and specialty gas business, and its Caribbean and Canadian packaged gas business. Also, Linde will retain certain acetylene production and packaged gas fill plants supporting the distributor customer business it will keep. The transaction also will not affect Linde’s ongoing merchant liquid, tonnage, pipeline and on-site business in North America and its packaged gas businesses in other parts of the world.
Airgas previously announced that it expects the acquired business to be accretive to EPS up to $0.02 in the first 12 months after closing, during which time the majority of the integration costs will be incurred.
“We complete this acquisition as we celebrate a quarter-century of growth, with a proven track record of successfully integrating large and small acquisitions. We are confident in our ability to create value through this transaction,” said McCausland.