Air Liquide To Divest Assets To Matheson Tri-Gas Per Airgas Deal

The divestments are a significant step toward satisfying the conditions set by the FCC in its approval of Air Liquide's $13.4 billion acquisition of Airgas.

PARIS & HOUSTON — Air Liquide announced Friday that it has entered into an agreement to sell certain assets in the U.S. to Matheson Tri-Gas, a subsidiary of Taiyo Nippon Sanso Corporation of Tokyo, Japan. Upon closing, these divestitures to Matheson would mark a significant milestone toward satisfying the conditions required by the Federal Trade Commission in connection with Air Liquide’s recently closed acquisition of Airgas. Airgas was No. 9 on Industrial Distribution's 2015 Big 50 List.

Under the terms of the purchase agreements, Matheson will acquire the following assets from Air Liquide:

  • 18 air separation units in 16 locations;
  • Two nitrous oxide production facilities;
  • Four liquid carbon dioxide production facilities in four states, including two dry ice production facilities;
  • Three Airgas retail packaged welding gas stores in Alaska.

In addition, Air Liquide is currently in negotiations to sell two of its facilities in Iowa that produce both liquid carbon dioxide and dry ice, which are the remaining assets ordered by the FTC to be divested in connection with Air Liquide’s acquisition of Airgas.

As previously indicated, all assets to be sold under these divestitures generated revenues of approximately $270 million for the year ended Dec. 31, 2015. The Matheson transaction and the sale transaction for the Iowa plants remain subject to FTC approval and are expected to close in the third quarter of this year.

Under the terms of the purchase agreement, Matheson will acquire production facilities, equipment, inventory, distribution assets, and customer contracts. Matheson will also hire employees related to the divested assets upon closing of the transaction.

"We are pleased to have found a strong and qualified buyer for these assets, and are continuing to focus on the successful integration of our other operations in the U.S. with Airgas to deliver even greater value and service for customers, and contribute to the long-term profitable growth of Air Liquide," said Michael Grraff, member of Air Liquide's Executive Committee and Executive Vice-President for the Americas.

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