LEHIGH VALLEY, Pa.,
Sept. 29, 2011 /PRNewswire/ -- Air
Products (NYSE: APD) today announced it has agreed to acquire a 25
percent stake in the gases and equipment businesses of Abdullah
Hashim Industrial Gases & Equipment Co. Ltd. (AHG), a company
of the privately-owned Abdullah Hashim Group, based in The
Kingdom of Saudi Arabia. The
transaction is subject to regulatory approval and customary local
closing conditions. Financial terms are not being disclosed.
AHG is the largest private industrial gases company in
Saudi Arabia. It is comprised of
three businesses, including industrial gases, equipment, and
consumables and refrigerants. AHG has three main production
locations in Dammam, Jeddah and Riyadh, plus distribution centers at key
locations across The Kingdom. AHG also has a purchase agreement
with National Industrial Gases Company (NIGC) at Jubail and Yanbu
for liquid products.
"AHG is a long-established, respected and financially strong
business, run by an experienced leadership team," said Howard Castle-Smith, Air Products' vice
president and general manager, Tonnage Gases, Europe and Middle
East. "Merchant gases growth in The Kingdom is high, and
margins are strong, making it an attractive investment. It's also a
significant new platform from which to pursue tonnage gases
opportunities in The Middle East."
Air Products and AHG have a long-standing relationship and
currently operate two joint ventures. One is an on-site facility
supplying oxygen and nitrogen for Shadeed
Iron & Steel's production plant in the Sohar Industrial
Port of Oman. The other plant
supplies nitrogen and hydrogen to Emirates Float Glass in
Abu Dhabi, the United Arab Emirates.
"We see Air Products as the ideal partner to expand our business
across The Middle East," said
Khalid Hashim, AHG's managing
director. "Our relative strengths – AHG in the supply of merchant
gases and Air Products in large scale tonnage plants – make us
stronger together. Of course, Air Products is a leader in merchant
gases in many other parts of the world, and I expect us to benefit
from their capability in new technologies and product innovation
that we will offer to our customers and prospects."
Abdullah Hashim Group was founded in 1955 and is owned and
operated by the Hashim family. The industrial gases business is a
combination of liquid/bulk, pipeline products and a range of
packaged gases products. AHG has a particularly strong presence in
refining, primary metals markets, medical, food and aviation.
Air Products built the first ever air separation unit (ASU) in
the Middle East in the 1950s and
has 40 years of operating experience in the region. The
company has been working with the petrochemical and refinery
industries for decades, building, owning and operating ASUs and
hydrogen production plants.
Air Products designed and built two of the world's largest ASUs
for Qatar Oryx GTL at its site in Ras Laffan. Air Products also
owns an operating facility in the Jebel Ali Free Zone in the
United Arab Emirates.
About Air Products
Air Products (NYSE:APD) serves customers in industrial, energy,
technology and healthcare markets worldwide with a unique portfolio
of atmospheric gases, process and specialty gases, performance
materials, and equipment and services. Founded in 1940,
Air Products has built leading positions in key growth markets
such as semiconductor materials, refinery hydrogen, home healthcare
services, natural gas liquefaction, and advanced coatings and
adhesives. The company is recognized for its innovative culture,
operational excellence and commitment to safety and the
environment. In fiscal 2010, Air Products had revenues of
$9 billion, operations in over 40
countries, and 18,300 employees around the globe. For more
information, visit www.airproducts.com.
About the Abdullah Hashim Group
Abdullah Hashim Group, a family-owned Saudi company, has been in
business for more than half a century. Turnover exceeds USD 450MM,
and employs around 1,800 people. The group's activities are in
three main areas – the import and distribution of automotive
vehicles, agricultural and industrial equipment, including the
agency for Honda cars and motorcycles in Saudi Arabia; the distribution of welding
equipment and related supplies; and the manufacture and
distribution of a wide range of industrial and medical gases from
three main production locations and seven distribution centers in
the Kingdom of Saudi Arabia.
Abdullah Hashim Gases offers project engineering infrastructure,
including project design and installation, as well as extensive
regional operation support and back-up liquid gases distribution.
For more information, visit www.ahg.com.sa.
***NOTE: This release may contain forward-looking statements
within the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's reasonable expectations and assumptions as of
the date of this release regarding important risk factors. Actual
performance and financial results may differ materially from
projections and estimates expressed in the forward-looking
statements because of many factors not anticipated by management,
including risk factors described in the Company's Form 10K for its
fiscal year ended September 30,
2010.
SOURCE Air Products