Saudi Arabia: Acquisition of 75% of Al Khafrah Industrial Gases
The industrial and medical gas market in the Kingdom of Saudi Arabia, the largest
economy in the Middle East, presents an attractive growth potential for Air Liquide,
with double-digit growth in 2008, driven by the expansion of the petrochemical
industry and the development of infrastructure projects.
Air Liquide has just completed the acquisition of Al Khafrah Industrial Gases,
a company headquartered in Riyadh with operations in both Riyadh and Dammam
(East coast of the Kingdom). Sheikh Mubarak Al Khafrah, one of the founders and
former chairman of the company, will contribute to the expansion of the newly
incorporated company, which will be named Air Liquide Al Khafrah Industrial
Gases.
With more than US$20 million of sales in 2008 and around 100 employees, the
company's main business activities include the manufacturing, the sale of packaged
gases (oxygen, nitrogen, argon, acetylene, etc) and bulk air gases.
This acquisition complements the Saudi activity of Pure Helium, which was acquired
last year. It provides Air Liquide a solid basis for the continuing development of
its Industrial Merchant activity in the Kingdom of Saudi Arabia and in the Middle East
zone in general, where the Group currently employs more than 450 people.
Sheikh Mubarak Al Khafrah said: "I am particularly delighted to be the partner
of Air Liquide in this acquisition. I am also confident that a leader like Air
Liquide will bring its gas application know-how to accelerate the growth of the
company".
Pierre Dufour, Senior Executive Vice-President of the Air Liquide Group,
responsible for the Middle East zone, said: "This acquisition will strengthen our
position in the Middle East and allows us to get swift access to one of the
most dynamic industrial gas markets in the region. This acquisition is aligned
with the Group's program of targeted investments, notably in the Emerging
Economies."
