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Air Liquide, which currently owns 55% of Japan Air Gases (JAG) and has operational management, announces the purchase of the remaining 45% currently held by The Linde Group, based on an enterprise value which represents 9.5x EBITDA. Consequently The Linde Group will receive €590M. The completion of this transaction is subject to approval by the European competition authorities. JAG total revenues are estimated in 2006 to be around €930M and are currently fully consolidated in the Group’s accounts. This acquisition will have a positive impact on the Group’s results from 2007.
Japan Air Gases (JAG) was created in January 2003 following the merger of the industrial and medical gas businesses of Air Liquide Japan and Osaka Sanso Kogyo (BOC’s Japanese subsidiary). Following the successful integration, Japan Air Gases has become a significant player in the Japanese market, employing more than 2,000 people. Over the past four years, the company has made investments of more than 300 million euros, half during the course of 2006 alone, in order to accompany the development of its customers. Most recently, a promising partnership was established between JAG and Toshiba Corporation for the supply of services relating to the analysis and evaluation of products and equipment for the electronics industry.
Air Liquide has been present in Japan since 1907, supplying gas to the shipbuilding industry which required oxygen and acetylene welding and cutting techniques. Today, Japan is a strategic market for Air Liquide, where in addition to Japan Air Gases, it has a Research Center, an Engineering center and has also located its worldwide Electronics division management.
Benoît Potier, Chairman and Chief Executive Officer of the Air Liquide Group, declared: “This reinforcement of our position in Japan constitutes a new major strategic step forward for the Group in Asia, precisely when the Japanese market has returned to growth. From now on, thanks to Air Liquide’s presence in more than 70 countries, Japan Air Gases will be able to accompany its customers in their developments throughout the world. Today, with nearly 20% of the Group’s revenues, Asia lies at the heart of our growth strategy.”
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Present in 72 countries, Air Liquide is the world leader in industrial and medical gases and related services. The Group offers innovative solutions based on constantly enhanced technologies. These solutions, which are consistent with Air Liquide’s commitment to sustainable development, help to protect life and enable our customers to manufacture many indispensable everyday products. Founded in 1902, Air Liquide has nearly 36,000 employees. The Group has successfully developed a long-term relationship with its shareholders built on trust and transparency and guided by the principles of corporate governance. Since the publication of its first consolidated financial statements in 1971, Air Liquide has posted strong and steady earnings growth. Sales in 2005 totaled 10,435 million euros, with sales outside France accounting for almost 80%. Air Liquide is listed on the Paris stock exchange and is a component of the CAC 40 and Eurostoxx 50 indices (ISIN code FR 0000120073).
For further information, please contact:
Corporate Communication
Dominique Maire( + 33 (0)1 40 62 53 56
Corinne Estrade-Bordry ( + 33 (0)1 40 62 51 31
www.airliquide.com
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