Details of the potential acquisition were leaked earlier this morning.
Advertisement
Air Liquide said the transaction would significantly enhance its position in the United States, the world’s leading market for industrial gases. For the year ended March 31, it reported $5.30 billion in sales, with the bulk of its operations focused on the U.S.
Air Liquide will pay US$143 per share for outstanding shares of Airgas, amounting to a 50.6 per cent premium over Airgas’ one-month average share price, the companies said. Bloomberg also stated that no final decision had been made and the talks could fall apart.
In 2012, German rival Linde similarly used its acquisition of Lincare Holdings Inc., valued at about $3.8 billion, to expand its USA presence.
Air Liquide’s Europe-listed stock gained 2.53 percent on Tuesday, closing the day at 123.65 euros.
Benzinga received an anonymous phone tip three hours prior to Bloomberg’s report.
Air Liquide provides industrial gases used in the food, auto, chemical, oil and gas, aerospace, and semiconductor sectors, as well as in engineering and construction.
“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”, Executive Chairman Peter McCausland said in a statement.
Airgas rose 7.4 percent to $114.04 at 1:10 p.m.in NY trading before it was halted pending the announcement.
Advertisement
Airgas Inc., a supplier of industrial gases that has a regional headquarters in Appleton, is being acquired by a French company for $13.4 billion. As it stands, Airgas has more than 1m customers in the US. “This acquisition increases our geographic reach in the resilient United States market, and offers continuous growth opportunities”.
