Airgas acquires Linde Gas USA, Lehner & Martin and National Welders Supply

Airgas, Inc. (www.airgas.com) completed its acquisition of Linde Gas USA LLC, and with it most of the U.S. packaged gas business of Linde AG. The acquisition was effective June 30.

Airgas paid $310 million in cash for Linde's operations. The acquisition involved 130 locations in 18 states, including branches, warehouses, packaged gas fill plants, and other operations involved in distributing packaged industrial and specialty gases and related equipment. In 2006, the business generated $346 million in revenue.

"The packaged gas locations we have acquired fill in our network in a key corridor from Pittsburgh to Chicago, and in other important geographies in the eastern U.S.," Peter McCausland, Airgas chairman and chief executive officer, said.

Most Linde locations and the 1,400 employees that work at them have joined Airgas's seven regional companies and National Welders Supply Company. Two specialty gas facilities in Maumee and Valley View, Ohio, have joined the Airgas Specialty Gases national network, and some corporate functions based in Cleveland have joined Airgas corporate teams.

Airgas also acquired Lehner & Martin, Inc., a Santa Ana, Calif.-based industrial gas and welding supply distributor with branches in Placentia, Gardena, and Chino, Calif. Lehner & Martin generated sales of more than $13 million in the fiscal year ended March 31, 2007.

The operations have been integrated into Airgas West, one of the regional companies that make up Airgas' distribution business.

L&M was founded by Ken Lehner in 1975 and is currently managed by his son, Mark Lehner, who will join Airgas West as an area vice president.

On July 2, Airgas also announced it reached a definitive agreement with its National Welders joint venture partners to exchange all preferred shares of National Welders Supply Company stock for Airgas common stock, which will transition the joint venture into a wholly owned subsidiary of Airgas. Since 1996, Airgas has owned 100 percent of the National Welders Supply Company common stock, with a 50 percent voting interest. The Turner family and other owners of National Welders preferred stock held the balance of the voting interest and received a 5 percent annual preferred stock dividend.

Under the definitive agreement reached, Airgas will exchange approximately 2.47 million shares of Airgas common stock for all preferred shares. Airgas said it expects to report a one-time after-tax charge of approximately $3 million in its quarter ended September 30, 2007 as a result of the transaction.

Andy Cichocki, president and chief executive officer of National Welders, will report directly to Mike Molinini, executive vice president and chief operating officer of Airgas, Inc. In other respects, Airgas said National Welders will continue to operate with regional autonomy, as other Airgas regional companies do.

Airgas, Inc., through its subsidiaries, is the largest U.S. distributor of industrial, medical, and specialty gases, and hard goods, such as welding equipment and supplies. Airgas is also one of the largest U.S. distributors of safety products, the largest U.S. producer of nitrous oxide and dry ice, the largest liquid carbon dioxide producer in the Southeast, and a leading distributor of process chemicals, refrigerants, and ammonia products.