Announcement

Collapse
No announcement yet.

Air Liquide to buy Airgas

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Air Liquide to buy Airgas

    Hit the wire less than an hour ago.

    More here: http://www.reuters.com/article/2015/...0T62H420151117
    CanoeCruiser
    Harris dual-stage O/A
    Lincoln AC/DC buzzbox
    Hobart IronMan 210
    Lincoln PowerMig 135
    Miller 3035 spoolgun
    Thermal Arc 185
    Thermadyne Cutmaster 52
    Angle grinders, vicegrips, the usual suspects
    Two hands, tired body, not enough time...

  • #2
    Gads... Europe is taking back our country by buying it.... But maybe it will bring stability in AIRGAS arena...

    Dale
    Lives his life vicariously through his own self.

    Comment


    • #3
      We might not like how this will shake out. Clearly Air Liquide (AIRP) believes paying a 50% premium to acquire Airgas (ARG) will give them a greater ROI than organic growth in their home market. The compressed gases market in the U.S. overall is trading at P/E ratios in the high 30's and ARG was "undervalued" by comparison since their P/E went up dramatically on the news to 31.7; this is still below the U.S. market average for the sector. So AIRP must believe there is a lot of opportunity to squeeze higher margins out of ARG ops in the U.S. The street isn't so positive on the deal; AIRP stock dropped around 7% when the deal was announced. This will put pressure on AIRP to show it is beneficial to earnings after covering the debt they're issuing to finance the acquisition.

      Edit: This is solely my own back-of-the-envelope analysis done before my first coffee, and we can expect stock price swings for a few days.
      Last edited by canoecruiser; 11-18-2015, 05:35 AM.
      CanoeCruiser
      Harris dual-stage O/A
      Lincoln AC/DC buzzbox
      Hobart IronMan 210
      Lincoln PowerMig 135
      Miller 3035 spoolgun
      Thermal Arc 185
      Thermadyne Cutmaster 52
      Angle grinders, vicegrips, the usual suspects
      Two hands, tired body, not enough time...

      Comment


      • #4
        probably not have anti trust issues.

        At least Airgas wasn't trying to gobble up Praxair or Matheson. That would have ended a lot of competition. Airgas already generally has high prices on gas. Guess air liquid just wants to boost its foothold in the US quickly.
        Last edited by gatemaker; 11-18-2015, 07:29 PM.
        fence and gate shop worker
        At home...
        Lincoln Power MIG 180....
        Winco 6000 watt generator (13 hp Honda) "Big Jake"

        Comment


        • #5
          Couldn't happen to a nicer outfit. Now the real question, will they be an even worse rip off🤔. One thing almost for sure. Airgas won't be missed by the weekend welder crowd.

          Comment

          Working...
          X