BOC offloads US packaged gas business
27 Jan 2004
Britain's BOC Group announced today that it intends to sell its US packaged gas business to Airgas for up to $200 million in cash. The business is said to have generated approximately $240million of revenue in 2003.
The companies have signed a non-binding letter of intent and the sale is subject to customary conditions, including US regulatory approval.
The sale includes 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 also includes packaged industrial, medical and most speciality gases.
The sale excludes packaged electronic gases, helium and hydrogen delivered in tube trailers or in liquid form, bulk medical gases and bulk gases supplied to its distributors. These, along with the Canadian packaged gases business, will remain part of BOC's Industrial and Special Gases business in North America.
'We have worked hard to improve the performance of our packaged gases business in the United States, and we believe the proposed sale to Airgas represents the best long-term outcome for our shareholders and employees,' said Tony Isaac, chief executive of BOC.
