Board pegs the value of Airgas at a price of at least $78 per share
The Board of Directors of Airgas said today it has unanimously rejected the revised unsolicited tender offer from Air Products & Chemicals, Inc. to acquire all outstanding common shares of Airgas at a price of $70.00 per share in cash. The Board unanimously recommends that Airgas stockholders to not tender their shares into Air Products' revised offer.
The board said that the $70 per share offer is "clearly inadequate" and that the value of Airgas is at least $78.00 per share.
Showing posts with label wholesale distribution; Airgas; industrial distributors. Show all posts
Showing posts with label wholesale distribution; Airgas; industrial distributors. Show all posts
Wednesday, December 22, 2010
Wednesday, October 27, 2010
Airgas sales increase 10 percent in Q2
Reiterates Air Products’ offer to buy Airgas is “grossly inadequate”
Airgas, Inc. (NYSE: ARG), the largest U.S. distributor of industrial, medical, and specialty gases and related MRO supplies yesterday reported second quarter sales of $1.06 billion, a nearly 10 percent increase over the same period a year ago. The company reported a sequential increase of 1% compared to the first quarter. Acquisitions contributed 1% sales growth over the prior year. Profit increased 22 percent.
Based on the strong earnings report, Airgas again reiterated its contention that the offer from Air Products and Chemicals to buy Airgas was “grossly inadequate.”
In a letter to Air Products after the earnings report, Airgas wrote: “Each of our ten directors is of the view that the current Air Products offer of $65.50 per share is grossly inadequate. In light of Airgas’ strong performance, outstanding prospects, and unique industry position, as well as the enormous financial benefits to Air Products of an acquisition of Airgas, the current offer price is not close to the right price for the sale of the Company.
“Our Board is also unanimous in its views regarding negotiations between Air Products and Airgas. To that end, we read with great interest your and your chief financial officer’s trial testimony, including the testimony that Air Products is attempting to acquire Airgas for the lowest possible price. In contrast, our obligation is to seek the greatest possible price in the event of a sale of the Company. Each member of our Board believes that the value of Airgas in any sale is meaningfully in excess of $70 per share. We are writing to let you know that our Board is unanimous in its willingness to authorize negotiations with Air Products if Air Products provides us with sufficient reason to believe that those negotiations will lead to a transaction at a price that is consistent with that valuation.”
In releasing the numbers for the quarter, Airgas offered an upbeat tone. “Our business continued to strengthen in our second quarter, reflecting broad-based improvement in most of our geographies and customer segments, and with the greatest strength in manufacturing,” said Airgas Chief Executive Officer Peter McCausland.
“Hardgoods same-store sales accelerated noticeably this quarter as compared to gas and rent same-store sales, which is a trend consistent with an economic recovery. While revenues have not yet recovered to pre-recession levels, we are experiencing favorable leverage on sales growth and are achieving near record results for earnings and margins.”
Airgas, Inc. (NYSE: ARG), the largest U.S. distributor of industrial, medical, and specialty gases and related MRO supplies yesterday reported second quarter sales of $1.06 billion, a nearly 10 percent increase over the same period a year ago. The company reported a sequential increase of 1% compared to the first quarter. Acquisitions contributed 1% sales growth over the prior year. Profit increased 22 percent.
Based on the strong earnings report, Airgas again reiterated its contention that the offer from Air Products and Chemicals to buy Airgas was “grossly inadequate.”
In a letter to Air Products after the earnings report, Airgas wrote: “Each of our ten directors is of the view that the current Air Products offer of $65.50 per share is grossly inadequate. In light of Airgas’ strong performance, outstanding prospects, and unique industry position, as well as the enormous financial benefits to Air Products of an acquisition of Airgas, the current offer price is not close to the right price for the sale of the Company.
“Our Board is also unanimous in its views regarding negotiations between Air Products and Airgas. To that end, we read with great interest your and your chief financial officer’s trial testimony, including the testimony that Air Products is attempting to acquire Airgas for the lowest possible price. In contrast, our obligation is to seek the greatest possible price in the event of a sale of the Company. Each member of our Board believes that the value of Airgas in any sale is meaningfully in excess of $70 per share. We are writing to let you know that our Board is unanimous in its willingness to authorize negotiations with Air Products if Air Products provides us with sufficient reason to believe that those negotiations will lead to a transaction at a price that is consistent with that valuation.”
In releasing the numbers for the quarter, Airgas offered an upbeat tone. “Our business continued to strengthen in our second quarter, reflecting broad-based improvement in most of our geographies and customer segments, and with the greatest strength in manufacturing,” said Airgas Chief Executive Officer Peter McCausland.
“Hardgoods same-store sales accelerated noticeably this quarter as compared to gas and rent same-store sales, which is a trend consistent with an economic recovery. While revenues have not yet recovered to pre-recession levels, we are experiencing favorable leverage on sales growth and are achieving near record results for earnings and margins.”
Sunday, September 12, 2010
Airgas may buy back $700 million of its stock
Shareholder meeting will be held Wednesday
Airgas Inc. says it may buy back $700 million of its stock and could overhaul its balance sheet to purchase more should Air Products & Chemicals Inc. withdraw its 5.5 billion hostile takeover bid, according to a report by bloomberg.com.
Airgas can buy 13 percent of its stock at the current price under existing loan covenants Peter McCausland, the Pennsylvania-based industrial-gases distributor’s chief executive officer, said a telephone interview with Bloomberg. Airgas could refinance debt and tap new investors as part of a recapitalization to extend the share buybacks, he said, declining to comment on pricing.
Air Products is threatening to withdraw its bid of $65.50 a share unless Airgas shareholders on Sept. 15 elect its three director nominees and approve its proxy questions at an annual meeting. One of the questions may allow Air Products nominees to seize control of Airgas’s nine-member board in January.
“If this January meeting is turned down and Air Products walks, we will be able to come up with a good solution,” McCausland said, according to Bloomberg. “What is really important is that the remaining shares that aren’t purchased trade at a good price.”
For a full copy of the report, click on to www.bloomberg.com
Airgas Inc. says it may buy back $700 million of its stock and could overhaul its balance sheet to purchase more should Air Products & Chemicals Inc. withdraw its 5.5 billion hostile takeover bid, according to a report by bloomberg.com.
Airgas can buy 13 percent of its stock at the current price under existing loan covenants Peter McCausland, the Pennsylvania-based industrial-gases distributor’s chief executive officer, said a telephone interview with Bloomberg. Airgas could refinance debt and tap new investors as part of a recapitalization to extend the share buybacks, he said, declining to comment on pricing.
Air Products is threatening to withdraw its bid of $65.50 a share unless Airgas shareholders on Sept. 15 elect its three director nominees and approve its proxy questions at an annual meeting. One of the questions may allow Air Products nominees to seize control of Airgas’s nine-member board in January.
“If this January meeting is turned down and Air Products walks, we will be able to come up with a good solution,” McCausland said, according to Bloomberg. “What is really important is that the remaining shares that aren’t purchased trade at a good price.”
For a full copy of the report, click on to www.bloomberg.com
Wednesday, September 8, 2010
Airgas rejects Air Products offer
Battle ahead at next week’s stockholder’s meeting
Airgas, Inc. today announced that its Board of Directors has unanimously rejected the revised unsolicited tender offer from Air Products & Chemicals, Inc.to acquire all outstanding common shares of Airgas at a price of $65.50 per share in cash. The Board unanimously recommended that Airgas stockholders not tender their shares into Air Products' revised offer. The Board also urges stockholders to vote for Airgas' three directors and against Air Products' By-Law amendment proposals at Airgas' Annual Meeting of Stockholders on September 15.
In a prepared release, Airgas Chairman and Chief Executive Officer Peter McCausland said, "The Airgas Board of Directors is unanimous in its belief that Air Products' revised offer, which represents only a $2.00 per share increase over its previous offer, continues to grossly undervalue Airgas. We believe that this slight increase in Air Products' offer price does not adequately compensate Airgas stockholders for the Company's inherent value, excellent prospects and impressive economic performance since Air Products first announced its offer. The Board is unanimous in its belief that $65.50 per share is not an appropriate value or a sensible starting point for negotiations to achieve such a value."
McCausland concluded, "We believe that Air Products' threat to withdraw its offer if Airgas stockholders do not elect its nominees and approve its By-Law proposals is just another coercive tactic designed to facilitate the acquisition of Airgas at the lowest possible price. If Air Products follows through on its threat, Airgas intends, through repurchases or other transactions, to assist its stockholders who desire to sell their shares in the near term."
See our previous blog posted yesterday in which Air Products increased its offer to purchase Airgas.
Airgas, Inc. today announced that its Board of Directors has unanimously rejected the revised unsolicited tender offer from Air Products & Chemicals, Inc.to acquire all outstanding common shares of Airgas at a price of $65.50 per share in cash. The Board unanimously recommended that Airgas stockholders not tender their shares into Air Products' revised offer. The Board also urges stockholders to vote for Airgas' three directors and against Air Products' By-Law amendment proposals at Airgas' Annual Meeting of Stockholders on September 15.
In a prepared release, Airgas Chairman and Chief Executive Officer Peter McCausland said, "The Airgas Board of Directors is unanimous in its belief that Air Products' revised offer, which represents only a $2.00 per share increase over its previous offer, continues to grossly undervalue Airgas. We believe that this slight increase in Air Products' offer price does not adequately compensate Airgas stockholders for the Company's inherent value, excellent prospects and impressive economic performance since Air Products first announced its offer. The Board is unanimous in its belief that $65.50 per share is not an appropriate value or a sensible starting point for negotiations to achieve such a value."
McCausland concluded, "We believe that Air Products' threat to withdraw its offer if Airgas stockholders do not elect its nominees and approve its By-Law proposals is just another coercive tactic designed to facilitate the acquisition of Airgas at the lowest possible price. If Air Products follows through on its threat, Airgas intends, through repurchases or other transactions, to assist its stockholders who desire to sell their shares in the near term."
See our previous blog posted yesterday in which Air Products increased its offer to purchase Airgas.
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