BOC to sell US packaged gases business
The BOC Group announced 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 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 Products 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. Packaged electronic gases remain part of BOC Edwards.
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