DANBURY, Conn.--(BUSINESS WIRE)--Praxair, Inc. (NYSE:PX), in accordance with its proposed business combination with Linde AG (LIN.DE), has signed an agreement to sell the majority of its businesses in Europe to Taiyo Nippon Sanso Corporation. The divested businesses generated annual sales of approximately 1.3 billion euros in 2017. The purchase price for this transaction is 5.0 billion euros in cash consideration and is subject to customary adjustments at closing. This agreement is conditioned on the successful consummation of the Praxair-Linde merger and other regulatory approvals.
“We are taking a constructive approach to address regulatory concerns with the merger in the European Economic Area,” said Steve Angel, Praxair chairman and chief executive officer. “Taiyo Nippon Sanso is a strong and capable global industrial gas buyer for our assets and we are pleased that they will continue to serve the needs of our customers in Europe.”
The assets to be sold include Praxair’s industrial gases businesses in Belgium, Denmark, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden and the United Kingdom and include approximately 2,500 employees.
Praxair and Linde continue to work diligently with the relevant antitrust authorities with the objective of closing the merger during the second half of 2018.
“With this acquisition, we are seizing a unique opportunity to enter the European market and establish a truly global footprint through the purchase of highly attractive assets in all the key geographies in the European Union. We look forward to growing these highly profitable businesses and welcoming the experienced and dedicated Praxair European team to TNSC,” said Yujiro Ichihara, President CEO, Taiyo Nippon Sanso Corporation.
Praxair will continue to own, operate and maintain these businesses until the closing of the merger and this European divestiture transaction.
Credit Suisse Securities acted as exclusive financial advisors to Praxair and McDermott Will & Emery UK LLP as legal advisors.
Mizuho Securities acted as primary financial advisors to TSNC and Greenberg Traurig LLP as legal advisors.
About Praxair
Praxair, Inc. is a leading industrial gas company in North and South America and one of the largest worldwide. With market capitalization of approximately $40 billion and 2017 sales of $11 billion, the company employs over 26,000 people globally and has been named to the Dow Jones® World Sustainability Index for 15 consecutive years. Praxair produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Our products, services and technologies are making our planet more productive by bringing efficiency and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, primary metals and many others. For more information about the company, please visit our website at www.praxair.com.
About Taiyo Nippon Sanso
Taiyo Nippon Sanso Corporation is among the top five industrial gas suppliers in the world and the largest in Japan. Taiyo Nippon Sanso currently operates in more than 17 countries and regions worldwide including Southeast Asia, Korea, China, India, Australia, and in the United States, operates through its wholly owned affiliate, Matheson Tri-Gas, Inc. Taiyo Nippon Sanso is a single source for industrial, medical, specialty and electronics gases, carbon dioxide, helium, hydrogen, fuel gases, welding and safety supplies, gas handling equipment, high performance purification systems, engineering and gas management services, and on-site gas generation with a mission to deliver innovative solutions for global customer requirements. Taiyo Nippon Sanso provides essential products and services to diverse industries including the steel, chemical, energy, electronics, automobile, construction, shipbuilding, life science, and food industries. Taiyo Nippon Sanso’s technical expertise in areas such as plant engineering and gas applications R&D is recognized as being among the best in the world. For more information, visit Taiyo Nippon Sanso at www.tn-sanso.co.jp/en/.
