Disposal - US Packaged Gases Business
27 January 2004 - 6:01PM
UK Regulatory
27 January 2004
BOC to sell US packaged gases business
Windlesham, UK - 27 January 2004 - The BOC Group announced today that it
intends to sell its US packaged gas business to Airgas for up to USD 200
million in cash. The business generated approximately USD 240million of revenue
in financial year 2003. The companies have signed a non-binding letter of
intent and the sale is subject to a definitive agreement and customary
conditions, including financing and US regulatory approval. The transaction
will be earnings enhancing for BOC in the year immediately following
completion.
The transaction would include fill plants and other operations involved in
distributing packaged gases and welding equipment sold through BOC's stores and
its distributors, as well as its retail stores and warehouse facilities. The
business includes the range of packaged industrial, medical and most speciality
gases.
It would exclude packaged electronic gases, helium and hydrogen delivered in
tube trailers or in liquid form, bulk medical gases and bulk gases supplied to
its distributors. These elements, along with the Canadian packaged gases
business, remain part of BOC's Industrial and Special Gases business in North
America. BOC's merchant liquid and tonnage/on-site business in North America is
unaffected, as are BOC's packaged gases businesses in other parts of the world.
Tony Isaac, chief executive of BOC, said: "We will continue to invest in
markets where we see superior opportunities for profitable growth in line with
our strategy. We have worked hard to improve the performance of our packaged
gases business in the United States, and we believe the proposed sale to Airgas
represents the best long-term outcome for our shareholders and employees. It
will also ensure continuing high quality service for our US packaged gases
customers."
Contact: Christopher Marsay, Director - Investor Relations
Tel: 01276 477222 (International +44 1276 477222)
Notes to Editors:
The BOC Group (LSE: BOC), the worldwide industrial gases, vacuum technologies
and distribution services company, serves two million customers in more than 50
countries. It employs 44,500 people and had annual sales of more than GBP4.3
billion in 2003. Further information about The BOC Group may be obtained on the
Internet at http://www.boc.com.
About Airgas, Inc.
Airgas, Inc. (NYSE: ARG) is the largest US distributor of industrial, medical
and specialty gases, welding, safety and related products. Its integrated
network of nearly 800 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.
END