Air Liquide To Buy Airgas In A Deal Worth $13.4 Bln

(RTTNews) - Air Liquide SA has agreed to buy US-based Airgas Inc. (ARG) in a deal worth $13.4 billion, or 12.5 billion euros, including debt, as the French company expands further into the U.S. market.

Airgas shareholders will receive $143 a share in cash for all outstanding shares of Airgas. The offer represents a premium of 50.6 percent to Airgas' one month average share price, prior to the announcement of the transaction.

Air Liquide CEO Benoit Potier said, "This acquisition increases our geographic reach in the resilient U.S. market, and offers continuous growth opportunities."

"This transaction is compelling for our shareholders, arising from the persistent execution of our business strategy for more than three decades. Air Liquide's long-term vision and strong heritage in the U.S. make it the right fit for our valued customers, and the combination creates significant opportunities for the talented employees of both companies," said Peter McCausland, Executive Chairman of Airgas.

McCausland owns 9.5% of the industrial gas company's shares outstanding, which makes him the largest shareholder.

Air Liquide expects the acquisition to be accretive from the first year, and plans to realize more than $300 million of pre-tax cost, efficiency and volume synergies; the majority within two to three years.

The deal is subject to Airgas shareholders' approval and other regulatory approvals.

ARG closed Tuesday's trading at $137.35, up $31.17 or 29.36%, on the NYSE.