The distribution network, which generated $65 million in 2004, will be sold to Airgas.
Airgas has signed a non-binding letter of intent to acquire the Industrial Products Division of LaRoche Industries who distribute anhydrous ammonia and related services in the US.
The acquisition would include a nationwide distribution system of 24 locations and a fleet of more than 100 delivery vehicles. The business generated revenues of around $65 million in 2004 and employs more than 130 people. The acquisition is expected to be accretive in the first year.
Commenting on the deal, Airgas Chairman and Chief Executive Officer Peter McCausland said,This operation is a good strategic fit with our distribution infrastructure and would greatly strengthen our process chemicals platform acquired from Air Products in 2002. The LaRoche assets would broaden our infrastructure to include railcar distribution, which could be used for transportation of other products in our portfolio. Its primary customer base in the utility industry also fits well with a key industrial market for us.
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