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Airgas to acquire TechAir
Posted on Thursday, 07 February 2019 10:57
Air Liquide’s Airgas business has reached an agreement to acquire US-based industrial gases and welding supplies group Tech Air Corporate Holdings for an undisclosed amount.
The deal is expected to further strengthen the acquiror’s distribution network, enabling more proximity to local customers, leveraging the group’s integrated model and deliver significant efficiencies.
Airgas will be able to provide expanded offerings and wider distribution network and a leading digital platform.
Closing is expected before the end of the year and is subject to US antitrust approval.
Airgas and Tech Air will together have a complementary footprint to better serve customers and boost each network in the country.
Founded in 1935, the target is billed as a major distributor of industrial, medical and speciality packaged gases, welding equipment and supplies.
It is owned by CI Capital Partners and Tech Air management and serves some 45,000 customers, with 550 employees and annual revenue of around USD 190.00 million.
Tech Air operates 50 locations in California, Texas, and Northeast and Southeast US.
Pascal Vinet, chief executive of Airgas, noted: “Growth through acquisition has been a key component of Airgas’ business model and remains a core part of our long-term strategy.
“We look forward to welcoming the Tech Air team to Airgas, and integrating their complementary capabilities and resources to enhance service for our customers.”
The target is being advised by global investment bank Harris Williams.
Airgas claims to be the leading supplier of industrial, medical and speciality gasses in the US, counting over 1.00 million customers, 18,000 employees and more than 1,400 locations worldwide.
The group is owned by Air Liquide, a frontrunning company in gas, technology and services for industry and health, which has over 65,000 staff members and a presence in 80+ countries.
According to Zephyr, the M&A database published by Bureau van Dijk, there were 222 deals targeting industrial machinery and equipment wholesalers announced worldwide in 2018.
The largest of these, which was also the only deal to be worth more than USD 1.00 billion, or equivalent, involved CVC Capital Partners, via Quimper, acquiring the remaining stake in Swedish electrical, heating, plumbing and ventilation products seller Ahlsell for SEK 17.97 billion (USD 1.96 billion).
© Zephus Ltd