Air Liquide sells German large industries, bulk and cylinder gas activities to Praxair
Following the acquisition of Messer Griesheim in Germany, Air Liquide has signed an agreement with the American company Praxair, for the sale of the large industries, bulk and cylinder gas activities to be divested in Germany, representing sales of about 180 million euros in 2003.
The sale of these activities (cf appendix) complies with the agreement signed between Air Liquide and the European Commission on March 15, 2004 to meet anti-trust requirements and remains subject to its final approval. Praxair will also have to obtain the approval of the German cartel office.
Air Liquide chose Praxair, one of the major industrial gas companies, based on value and industrial perspective.
In total, the combined proceeds from the agreements signed to date amount to approximately 655 million euros, consisting of USD155 million (approx. 125 million euros) in the US in July, and 530 million euros in Germany, including the recently sold CO2 business. This was achieved on the basis of a sales multiple higher than the global acquisition price multiple. The proceeds from these sales, net of taxes, will allow the Group to reduce its debt by the end of the year as anticipated.
As of today, the sale of the Messer participation in a joint venture serving the electronics industry (35 millions euros of 2003 sales) is the only one still to be completed. Discussions with several potential buyers and partners are already underway.
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