Red-D-Arc owner Airgas ponders second offer from Air Products
By Murray Pollok05 February 2010
Airgas, Inc in the US, owner of Red-D-Arc Welderentals, has rejected an unsolicited acquisition proposal from Air Products & Chemicals. Air Product's bid values Airgas at US$60.00 per share.
The Airgas board is now assessing the bid, but the company said it had already rejected earlier bids of similar value from Air Products received late last year.
In early January, Peter McCausland, Airgas' chairman and chief executive officer, wrote to Air Products' chairman and chief executive officer, John McGlade, saying; "It is the unanimous view [of the Airgas board] that the Air Products proposal grossly undervalues Airgas. Therefore, the Board is not interested in pursuing your company's proposal and continues to believe that there is no reason to meet."
Red-D-Arc Welderentals is one of the largest specialty rentals businesses in North America, with annual revenues of $94 million in 2008. It was ranked at number 77 in IRN's list of the 100 largest equipment rental companies in the world last year.