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Information Paris, May 6, 2004 Press Release Air Liquide completes acquisition of Messer Griesheim's activities in Germany, the United Kingdom and the United States
The Group completed this major acquisition, announced on January 20, 2004, within a very short time and thus any penalties. The purchase represents an investment of 2.7 billion euros, before divestitures and after adjustment. In line with initial estimates, the net sales acquired after divestitures will be around 800 million euros. The divestitures required by the antitrust authorities amount to 23% of the total acquired sales. The divestitures will be completed as quickly as possible; several industrial companies have already indicated an interest in the businesses Air Liquide will be selling in Germany and the United States. The acquired businesses and their personel are of high quality and effectively complement thoese of the Group. The current profit margin and cash flow levels of the combined operations will be inproved by synergies estimated about EUR 100 million, which means the acquisition will be earnings accretive in the first twelve months. Integratin teams are already in place, and the senior management is in the process of being appointed. Me Klaus Schmieder, currently Chairman of the Management Board of Messer Griesheim, will join the Air Liquide Group where he will have an important assignment. The acquisition will be entirely debt financed and funded from the financial markets and bank loans. The Group's balance sheet will remain very solid given its strong dependable cash flow generation, which is further strengthened by the acquisition. Air Liquide's capacity for investment and external growth will thus remain intact. The dividend police will also be maintained. Benoit Portier, Chairman of Air Liquide's Management Board, said: "This acquisition in three large countries is a major and strategic step forward for Air Liquide. The geographic presence of our activities combined with that of Messer Griesheim's, the string heritage which each partner brings to the deal, and our recognized expertise will give the Group a new solid and enlarged base. We will be at the heart of major European markets and will enhance our national coverage in the United States, particularly in one of the country's key industrial zones. Around the world, the combined company will enable us to provide customers with a broader range of high quility products and services. We will also leverage our productivity programs and pursuit of growth opportunities. I wuld like to congratulate the teams involved in this project, especially those responsible for establishing and maintaining a constructive work with the European Commission and U.S. Federal Trade Commission: they ensured the success of this project, which is so important for the Group's future. To be the world leader in industrial and medical gases, recognized for our innovative spirit and our ability to deliver sustained, profitable growth - this is our objective. This acquisition gives theGroup new momentum to accelerate its development strategy." ****************** Present in 65 countries, Air Liquide is the qorld leader in industrial and medical gases and related services. The Group offers innovative solutions based on constantly enhanced technologies. These solutions, which are in line with Air Liquide's commitment to sustainable development, help to protect life and enable our customers to manufacture meny indispensable everyday products. Founded in 1902, Air Liquide has more than 31,900 employees. The Group has successfully developed a long-term relationship with its shareholders built on confidence and transparency and guided by the principles of corporate governance. Sales in 2003 totaled 8,394 million euros, of which sales outside France accounted almost 80%. Ait Liquide is listed on the Euronext Paris stock exchange and is a component of the CAC 40 and EuroStoxx 50 indexes (ISIN code FR 0000120073). For further information, please contact:
www.airliquide.gr |
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