Airgas Announces Letter of Intent to Acquire Industrial Products Division of LaRoche Industries
The acquisition would include a nationwide distribution system of 24 locations and more than 100 delivery vehicles. The business to be acquired generated about $65 million in revenues in 2004 and employs more than 130 people. The acquisition is expected to be accretive in the first year.
"This operation is a good strategic fit with our distribution infrastructure and would greatly strengthen our process chemicals platform acquired from Air Products in 2002," said Airgas Chairman and Chief Executive Officer Peter McCausland. "The LaRoche assets would broaden our infrastructure to include railcar distribution, which could be used for transportation of other products in our portfolio. Its primary customer base in the utility industry also fits well with a key industrial market for us."
The acquired operations and related personnel would become a new business unit, Airgas Specialty Products, within Airgas' Gas Operations Division and accounted for with the All Other Operations segment in its financial results. The Gas Operations Division also includes Airgas Carbonic and Dry Ice, Airgas Nitrous Oxide, and Air Separation Unit operations.
"Upon a successful closing, the people of the Industrial Products Division of LaRoche can look forward to a stable and prosperous future as a member of the Airgas family," said Michel Rapoport, president of LaRoche Industries. "Our organization looks forward to working with Airgas on a smooth transition for our customers, who should see continued great service for their ammonia and related needs."
About Airgas, Inc.
Airgas, Inc. (NYSE:ARG) is the largest U.S. distributor of industrial, medical and specialty gases, welding, safety and related products. Its integrated network of about 900 locations includes branches, retail stores, gas fill plants, specialty gas labs, production facilities and distribution centers. Airgas also distributes its products and services through eBusiness, catalog and telesales channels. Its national scale and strong local presence offer a competitive edge to its diversified customer base. For more information, please visit www.airgas.com.