Airgas rejects latest Air Products takeover bid
Airgas Inc. announced that its board of directors voted unanimously to reject the unsolicited tender offer from Air Products & Chemicals Inc. to acquire all outstanding common shares of Airgas at a price of $60.00 per share in cash.
The board unanimously recommends that Airgas stockholders not tender their shares into Air Products’ offer.
The board noted that the value offered by Air Products is unchanged from the unsolicited proposal Air Products made on Feb. 4, which the board considered and rejected. An Airgas filing with the Securities and Exchange Commission outlines the basis for the board’s recommendation.
“The Airgas Board of Directors is unanimous in its belief that the Air Products offer significantly undervalues Airgas and fails to reflect the value of our industry leading position and future growth prospects,” said Airgas Chairman and CEO Peter McCausland. “Since our IPO in 1986, Airgas has employed a disciplined approach to steadily growing revenue, EBITDA and shareholders equity, and Airgas stock has achieved total shareholder return over that period of more than seven times the return of the S&P 500 index. The Airgas Board strongly urges stockholders to reject Air Products’ offer and not tender their shares.”
In its SEC filing, Airgas said the offer grossly undervalues Airgas, said the offer and its timing are extremely opportunistic, and accused Air Products of employing "highly aggressive tactics, including deceptive statements, meritless litigation and misleading personal attacks," designed to direct attention away from the grossly undervalued and opportunistic nature of its offer.
Click here to read the Airgas filing with the SEC.
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
