Airgas Inc. is setting an ambitious goal for itself: The industrial gases and safety products distributor hopes to increase annual sales to $5 billion by 2011.

The Radnor, Pa.-based company, which ranked fifth on INDUSTRIAL DISTRIBUTION's 2007 Big 50 list of distributors with sales of $3.2 billion during fiscal 2007, expects sales to hit $4 billion during fiscal 2008, chairman and CEO Peter McCausland says.

“The strategic approach that we have taken to develop our infrastructure has created tremendous value for our customers. By providing an outstanding platform of products and services, including packaged and bulk gases, welding hardgoods, safety supplies and contractor equipment with our Red-D-Arc rental welders and related equipment, our customers know that they can look to Airgas for everything their job requires,” McCausland said in a statement.

The hoped-for growth is predicated on single-digit increases in annual same-store sales, up to $150 million in sales from acquisitions from 2009 to 2011, and annual capital expenditures of up to 6 percent of sales.

At a presentation to analysts and shareholders last month, McCausland talked about future acquisitions and the impact of private equity and the credit crunch on buyout activity.

“The presence of private equity has had an impact on the prices of acquisitions. The credit crunch will put a damper on acquisitions, but more of an indirect [damper],” he noted, but didn't rule out niche opportunities in Asia or other locations overseas.

“We'll go anywhere we think there's a good opportunity, but we're not going to be a global industrial gases company anytime soon,” McCausland said.

Mike Molinini, executive vice president and COO, cited several well-performing market segments and product lines, including Airgas' Outlook Services solution, which focuses on eliminating waste, bottlenecks and inefficiencies in customers' facilities.

That division has turned its eye toward the university and hospital market, Molinini said, “removing the headaches from the customer and migrating them to us.”