Airgas, Inc. announced that it has completed the acquisition of the U.S. bulk gas business that Linde AG (LIN.DE) was ordered to divest after its acquisition of The BOC Group. On March 9, 2007, the U.S. Federal Trade Commission publicly announced its approval of the transaction, which Airgas first announced on November 22, 2006.
The acquisition includes eight air separation units and related bulk gas business, with about 300 employees. The business generated $176 million in revenues in 2006. Airgas paid $495 million in cash in the transaction.
The acquired business has been renamed Airgas Merchant Gases, LLC, which is now led by Tom Thoman, senior vice president. Thoman, who had served as vice president – gases since joining Airgas, Inc. in 2001, has been directing integration work for the past few months.
From its Cleveland, OH, headquarters, Airgas Merchant Gases will manage production, distribution, and administrative functions for air separation plants in Canton and Dayton, OH; Madison and Waukesha, WI; Carrollton and Jefferson, GA; and Bozrah, CT, and transfer depots in LaPorte, IN; Romulus, MI; and Bethlehem, PA. About 34 sales and service employees have joined the respective Airgas regional companies for local service.
In a separate transaction, Airgas transferred an eighth plant in Rock Hill, SC and the aligned sales and service associates to its joint venture partner, National Welders Supply Company, Inc., which operates in the Carolinas and southern Virginia. The transferred business employs about 26 people and had more than $10 million in revenues in 2006.
“We welcome the Linde associates and customers to Airgas,” said Airgas Chairman and Chief Executive Officer Peter McCausland. “We have made tremendous progress on our integration plans in the past few months in order to make this a smooth transition. The combination of these bulk gas assets and people with our existing bulk gas business operated by Airgas and our joint venture National Welders will strengthen our gas supply chain nationwide and improve our ability to efficiently serve bulk gas customers.”
The acquired bulk business includes sales of nitrogen, oxygen, and argon produced at the plants, microbulk nitrogen and argon, as well as bulk helium, hydrogen, carbon dioxide and fuel gas sales to the plants’ customers.