Hudson Technologies Closes Acquisition of Airgas-Refrigerants Inc.
The transaction is valued on a gross basis at approximately $220 million
PEARL RIVER, N.Y. — Hudson Technologies Inc. announced the closing of its acquisition of Airgas-Refrigerants Inc., a subsidiary of Airgas Inc., an Air Liquide company and U.S. supplier of industrial gases. The transaction is valued on a gross basis at approximately $220 million. ARI is a refrigerant distributor and U.S. Environmental Protection Agency-certified reclaimer in the U.S. ARI distributes, reclaims, and packages refrigerant gases for a variety of end uses.
The trailing 12-month revenue through June 30 for ARI was approximately $142 million, and trailing 12-month pro forma revenue of the combined business as of June 30 was approximately $275 million. 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, said, “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 phaseout of HCFC [hydrochlorofluorocarbon] refrigerants and as the industry continues its transition to next-generation HFC [hydrofluorocarbon] refrigerants, which have also been identified for a future phasedown. 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.”
For more information, visit www.hudsontech.com.
Publication date: 10/11/2017