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SHANGHAI, July 19, 2018 /PRNewswire/ -- The industrial gases specialist Messer and CVC Capital Partners Fund VII ("CVC") today concluded an agreement with Linde AG to acquire the majority of Linde's gases business in North America and certain business activities in South America.
With approximately 5,100 employees, the acquired North and South American companies generated 2017 revenues of USD 1.7 billion (EUR 1.4 billion) and EBITDA of just over USD 360 million (EUR 305 million). The purchase price of USD 3.3 billion (EUR 2.8 billion) will be subject to customary adjustments at closing. The transaction is subject to the completion of the planned merger of the two industrial gases firms, Praxair and Linde, and the approval by the relevant cartel authorities.
The joint venture between Messer and CVC Fund VII will be named MG Industries and will operate under the Messer brand. As part of the transaction Messer, the world's largest privately managed specialist for industrial gases, will contribute its Western European operating companies to MG Industries. These operations in Spain, Portugal, Switzerland, France, Benelux, Denmark and Germany employ 780 people and generated a 2017 revenue of EUR 334 million. With 5,675 employees worldwide, Messer achieved a 2017 revenue in excess of EUR 1.2 billion.
'In creating this strategic partnership, we are seizing a unique opportunity to return to the North and South American markets and create a global player in the industrial gases sector,' said Stefan Messer, owner and CEO of the Messer Group, with headquarters in Bad Soden, Germany. Over the course of its restructuring in 2004, the Messer Group sold its North American holdings to the French Air Liquide SA. 'Through our industry expertise and strong engineering and application know-how, as well as the operational expertise and global network provided by CVC, we will continue to grow the acquired businesses together with their highly experienced and motivated employees.'
Alexander Dibelius, Managing Partner and Head of DACH at CVC added: 'This is an exciting opportunity to create a new global player in the attractive industrial gases sector. We are delighted to be partnering with Messer and the Messer family with whom we have had a long-standing, trusted relationship for years. Their engineering competencies and application know-how will, amongst others, be critical aspects in further growing the acquired businesses in the future.'
About Messer
The Messer Group, which was established in 1898, is the largest privately managed specialist in industrial, medical and special gases. Under the brand "Messer - Gases for Life", the company is active in 34 countries in Europe and Asia, as well as Algeria, with a total of more than 90 operating companies. The international activities are controlled from the Frankfurt am Main area. Stefan Messer, CEO and owner of the Messer Group, works together with the 5,765 employees in accordance with defined principles. These include a focus on customers and employees, responsible behaviour, corporate responsibility, excellence as well as trust and respect. In 2017 the industrial gas specialist generated consolidated turnover of EUR1.232 billion.
From acetylene to xenon, the Messer Group has one of the most diverse product portfolios on the market - it produces industrial gases such as oxygen, nitrogen, argon, carbon dioxide, hydrogen, helium, shielding gases for welding, specialty gases, medical gases and many different gas mixtures.
The Messer Group has state-of-the-art research and competence centers in which it develops applied technologies for the use of gases in almost every sector of industry, in food technology and environmental technology, medicine as well as research and science.
Messer started investing in China in the middle of the 90s and so far has 26 companies located in Shanghai, Jiangsu, Zhejiang, Hunan, Guangdong, Sichuan, Chongqing and Yunnan provinces, with a total investment of $1.082 million and 2050 employees in 2017.The steady and successful developments have allowed Messer to join the ranks of the major foreign industrial gas providers in China.
For more details about Messer, please visit:
http://www.messergroup.cn or http://www.messergroup.com
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