To Support Its Growth Ambitions, Air Liquide Widens Its Technological Capacity With The Purchase Of Lurgi
Air Liquide announces the acquisition of the engineering firm Lurgi, which is owned by Global Engineering Alliance
(GEA Group AG), based on an equity value of approximately 550 million euros, which is equivalent to an enterprise
value of 200 million euros after including the assumption of Lurgi's cash position as well as its pension and other
liabilities. The transaction is subject to approval by the European and American competition authorities.
This acquisition is an important step to achieve the new objectives recently announced by the Group. Notably, it will
enable the acceleration of growth in the Large Industries World Business Line, strengthening the Group's resources
in hydrogen markets and giving it access to the Coal to Liquid* (CTL) and Coal to Chemicals* (CTC) sectors.
With nearly 1,300 employees and total sales of around 850 million euros in 2006, Lurgi, a German-based company,
has a particularly large portfolio of technologies, from producing hydrogen and synthesis gas to biofuel
production processes (bio-ethanol, bio-diesel). Lurgi is one of the world leaders in these technologies, processes
which consume large quantities of oxygen. Its main engineering centers are situated in Germany, Poland, United
States, India and South Africa.
Air Liquide today has a great depth of expertise with five Engineering and Construction centers in the major
markets around the world (France, United States, Japan, China and India) with a total of 1,500 employees. With these
resources, Air Liquide designs, develops and builds its own gas production units. Gas production units are also
designed and manufactured for external customers, generating total third party sales in 2006 of 380 million euros. In
this regard, Air Liquide has been a regular partner with Lurgi for many years, with the most recent jointly-developed
projects undertaken in Saudi Arabia and Malaysia.
François Darchis, Member of the Air Liquide group's Executive Committee and responsible for Engineering and
Construction, declared: "The acquisition of Lurgi gives us the capacity to support the important growth of the
Group. It also enables us to widen our technical competencies. Doubling in size and thanks to the
complementary nature of our respective geographic presences, as well as our technology portfolios, our
Engineering division will be better placed to ensure the design and manufacture of very large units, which are
especially important in new markets. Our capacity to innovate, in R&D as well as technology, is a key growth
driver for the Group."
John Glen, the Group's Vice-President Finance and Administration, and François Darchis, Senior Vice-President,
responsible for Engineering and Construction, will hold a conference call on Tuesday 17 April, at 11.00 am.
