1 of 3
Airgas, Inc.
259 N. Radnor-Chester Rd.
Suite 100
Radnor, PA 19087-5283
AIRGAS News Release www.airgas.com
_______________________________________________________________________
Investor Contact: Media Contact:
- ---------------- -------------
Melissa Nigro (610) 902-6206 James Ely (610) 902-6010
melissa.nigro@airgas.com jim.ely@airgas.com
For release: IMMEDIATELY
AIRGAS COMPLETES PURCHASE OF MAJORITY OF AIR PRODUCTS'
U.S. PACKAGED GAS BUSINESS
RADNOR, PA - February 28, 2002 -- Airgas, Inc. (NYSE: ARG)
announced today that it has finalized its acquisition of the
majority of the U.S. packaged gas business of Air Products and
Chemicals, Inc. (NYSE: APD) for approximately $236 million in
cash. This landmark transaction, originally announced on
January 3, includes nearly 100 facilities in 30 states
associated with the filling and distribution of cylinders,
liquid dewars, tube trailers, and other containers of
industrial gases and non-electronic specialty gases, and the
retail selling of welding hardgoods, including customer
service centers, warehouses and other related assets.
The acquired assets generated approximately $223 million in
revenues in fiscal year 2001, with gas sales and cylinder rent
contributing 76 percent. The added revenue will increase the
overall Airgas business mix to 52 percent gas and rent.
"This acquisition is a natural evolution of our company and
one that validates our growth strategy," said Airgas Chairman
and Chief Executive Officer Peter McCausland. "It is a strong
strategic fit with our core business which has continued to
perform well and generate strong cash flows. It strengthens
our national network by giving our company a presence in
important new geographic areas as well as enhancing current
markets where local density is key to success. Experience
gained through our track record of more than 300 successful
acquisitions will help make this transition a seamless one for
our customers."
2 of 3
McCausland continued, "The added scale and capabilities we are
acquiring will help us achieve our overall long-term strategic
objectives of above-market sales growth and the low-cost
supplier position. We also welcome approximately 1,100 new
employees and the industry experience they bring to our team."
Additionally, the companies have entered into long-term
national supply agreements that will expand their
opportunities to market products and services. Airgas will
become the strategic supplier for Air Products' resale
packaged gas needs, enabling Air Products to continue to meet
customers' packaged gas requirements in critical segments,
such as electronics, home healthcare/MRI and export, and for
certain chemical process industries (CPI) customers. Air
Products will be a strategic supplier of bulk gases to Airgas,
increasing its supply of liquid oxygen, nitrogen and argon to
a minimum of 35 percent of Airgas' total bulk needs.
The transaction is expected to be neutral to earnings for the
first two quarters, excluding a one-time acquisition charge in
the current quarter, as Airgas works to integrate the
business, and accretive thereafter. It is also expected to be
accretive to return on capital and free cash flow.
Separately, Air Products sold its packaged gas operations in
the Carolinas and southern Virginia to National Welders Supply
Company, Inc., a joint venture between Airgas and the Turner
family of Charlotte, NC. The acquired operations include 9
sites, which generated $17 million in revenues in fiscal year
2001 and employ about 100 people.
ABOUT AIRGAS, INC.
Airgas, Inc. (NYSE: ARG) is the largest U.S. distributor of
industrial, medical and specialty gases, welding, safety and
related products. Its integrated network of 700 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.
# # #
3 of 3
FORWARD-LOOKING STATEMENTS
This press release may contain statements that are forward-
looking, as that term is defined by the Private Securities
Litigation Reform Act of 1995 or by the Securities and
Exchange Commission in its rules, regulations and releases.
These statements include, but are not limited to, statements
regarding: Airgas' expectation that the transaction will
increase its gas and rent business mix and strengthen its
national network; the expectation that the added scale and
capabilities with help Airgas achieve its long-term strategic
objectives; Airgas' expectation that the reciprocal supply
agreements will expand its opportunities to market products
and services; the expectation that the transaction will be
neutral to earnings for the first two quarters, excluding a
one-time acquisition charge in the current quarter, and
accretive thereafter; and the expectation that the transaction
will be accretive to return on capital and free cash flow.
Airgas intends that such forward-looking statements be subject
to the safe harbors created thereby. All forward-looking
statements are based on current expectations regarding
important risk factors and should not be regarded as a
representation by the Companies or any other person that the
results expressed therein will be achieved. Important factors
that could cause actual results to differ materially from
those contained in any forward-looking statement include an
unsuccessful integration of the acquired assets; customer
acceptance of the acquisition; adverse changes in general
economic conditions; political and economic uncertainties
associated with current world events and other factors
described in Airgas' reports, including Form 10-K dated March
31, 2001 and Form 10-Q dated December 31, 2001 filed by Airgas
with the Securities and Exchange Commission.