SAN JOSE, Calif. - Air Products and Chemicals Inc. has responded to the announcement by Airgas Inc., which has rejected Air Products’ offer to purchase all of the outstanding shares of Airgas for the increased price of $63.50 per share in cash made on July 8.
This offer is an increase of $3.50 per share over the initial offer of $60.00 per share and a premium of 46 percent over the closing price of Airgas’ shares on Feb. 4, 2010, the day before Air Products announced its initial offer.
“We are disappointed that the Airgas board has once again rejected an all-cash offer at a substantial premium without engaging with Air Products. This latest rejection comes in spite of a materially higher offer representing a 46 percent premium to Airgas’ pre-offer price. We believe Airgas shareholders today face substantially more uncertain market conditions than when we commenced our offer for Airgas in February, and that the certainty of a fully financed all-cash offer at a substantial premium is more attractive than ever before,” said John E. McGlade, Air Products chairman, president and chief executive, in a statement.
Earlier this year, Airgas Inc. (Radnor, Pa.) confirmed that Specialty chemical giant Air Products & Chemicals (Lehigh Valley, Pa.) has commenced an unsolicited tender offer to acquire all outstanding common shares of Airgas at a price of $60.00 per share in cash. Airgas is the largest U.S. distributor of industrial, medical, and specialty gases.
Air Products also reported net income of $277 million, or diluted earnings per share (EPS) of $1.28, for its fiscal third quarter ended June 30. This result excludes an after-tax charge of $24 million, or $0.11 per share, for costs associated with the tender offer for the outstanding shares of Airgas.
Third quarter revenues of $2.252 billion increased 14 percent from the prior year, and operating income of $374 million rose 22 percent from the prior year on significantly improved volumes.
Electronics and Performance Materials sales of $497 million improved 21 percent, and operating income of $62 million increased 60 percent over the prior year mainly on higher volumes, which have recovered to pre-recession levels. Electronics sales increased 18 percent versus prior year and 11 percent sequentially on improved volumes driven by higher customer utilization. The recent restructuring efforts in Electronics have been completed. Performance Materials volumes grew 26 percent versus prior year and improved 10 percent sequentially on strength in the underlying business supported by new product sales.