Air Liquide Sells Several U.S. Assets to Matheson to Make Way for Airgas Acquisition

Researched by Industrial Info Resources (Sugar Land, Texas)--Air Liquide S.A. (Paris, France), a multinational company that supplies industrial gases and other services to a variety of industries, completed the sale of several large, U.S.-based assets to Matheson Tri-Gas Incorporated, a subsidiary of Taiyo Nippon Sanso Corporation (Tokyo, Japan). The sale follows Air Liquide's recent acquisition of Airgas Incorporated (Radnor Township, Pennsylvania), making Air Liquide one of the largest industrial-gas companies in the world. Industrial Info is tracking $190.5 million in active projects involving Matheson.

Earlier this month, the U.S. Federal Trade Commission (FTC) approved Air Liquide's decision to sell the assets to Matheson. Air Liquide was motivated by the FTC's concern that its $13.4 billion purchase of Airgas would hurt industrial gas competition. For more information, see July 6, 2016, article - Air Liquide's 10 Top-Valued Projects Dominated by Methanol Facilities on U.S. Gulf Coast.

The transaction is valued at $781 million and generated Air Liquide a net gain (versus book value) of about $250 million, according to a press release from Air Liquide. The assets divested to Matheson include:

• eighteen air separation units in 16 locations
• two nitrous oxide production facilities
• four liquid carbon dioxide production facilities in four states, including two dry-ice production facilities
• three Airgas retail packaged welding gas stores in Alaska

The largest Matheson project tracked by Industrial Info is part of the massive buildout along the U.S. Gulf Coast: the construction of a 1,750-ton-per-day air separation plant in Westlake, Louisiana. The plant is expected to supply Sasol Limited's (NYSE:SSL) (Johannesburg, South Africa) new ethylene complex in Westlake with oxygen and nitrogen, via pipeline. The air separation plant is mechanically complete, and Matheson hopes to begin operations within the next two months. For more information, see Industrial Info's project report.

Matheson is weighing the possibility of a second-phase unit addition at the same plant, which would increase capacity by an unspecified amount and feature process equipment relocated from another of Matheson's air separation facilities. If constructed, the unit would support a number of new projects in the region. For more information, see Industrial Info's project report.

The U.S. Gulf Coast also is home to two of Air Liquide's largest active projects: the $170 million construction of an air separation plant in Saint James, Louisiana, and the $120 million construction of an air separation plant in Beaumont, Texas. The Saint James facility is expected to produce at least 2,400 tons per day of oxygen and 2,600 tons per day of nitrogen for a facility operated by Yuhuang Chemical Incorporated, while the Beaumont plant will supply 2,400 tons per day of oxygen to a nearby OCI Beaumont LLC facility. For more information, see Industrial Info's project reports on the Saint James and Beaumont facilities.

Taiyo Nippon Sanso Corporation (TNSC), Matheson's owner and Japan's largest industrial gas producer, is active in at least 15 countries and is planning to expand its role in North America's gas markets. "This acquisition is consistent with Taiyo Nippon Sanso's focused strategy to expand our presence in the U.S. market," said Yujiro Ichihara, the president and chief executive officer of Taiyo Nippon Sanso, in a statement on the Air Liquide sale. "It represents the largest acquisition in the TNSC group history and extends our plant network throughout the U.S."

Globally, the combination of Air Liquide and Airgas will generate annual sales of more than $22 billion, employ about 68,000 people and serve more than 3 million customers and patients, according to gasworld.

The sale to Matheson is not the only cutback planned by Air Liquide to accommodate the Airgas acquisition. Air Liquide recently announced it would close its industrial specialty gases facility in Longmont, Colorado, on October 1. The facility employs 22 people, who Air Liquide said have been offered positions within Airgas. Air Liquide also is considering the sale of Aqua Lung, its diving-equipment business, according to Bloomberg Markets.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.