Hudson Technologies, Inc. has announced the closing of its acquisition of Airgas-Refrigerants, Inc. (ARI), a subsidiary of Airgas, Inc., an Air Liquide company and leading US supplier of industrial gases.
The transaction is valued on a gross basis at approximately $220m. ARI is a leading refrigerant distributor and EPA certified reclaimer in the US ARI distributes, reclaims and packages refrigerant gases for a variety of end uses.
The trailing twelve-month revenue up until 30th June 2017 for ARI was approximately $142m, and trailing 12-month pro forma revenue of the combined business as of 30th June 2017 was approximately $275m. The acquisition is expected to be accretive to earnings beginning one year following the close of the transaction due to certain purchase price allocation adjustments, primarily to inventory, which will impact Hudson’s 2018 generally accepted accounting principles (GAAP) earnings per share.
Kevin J. Zugibe, Chairman and CEO of Hudson Technologies commented, “We’re very pleased to have closed this transformative acquisition which represents a milestone in our company’s history. The addition of ARI significantly strengthens our leadership position in the refrigerant and reclamation industry by enhancing our product offerings, increasing our geographic reach and customer base and enhancing our sales and distribution capabilities. This strategic combination considerably increases the scale of our company which will allow us to better serve our customers during the ongoing phase out of HCFC refrigerants and as the industry continues its transition to next generation HFC refrigerants, which have also been identified for future phase down. We welcome ARI’s experienced management team and employees and look forward to working together to serve our existing and new customers with our expanded product and service capabilities.”
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