Lincoln Electric Acquires Air Liquide Welding
This $134 million deal expands their global footprint in welding and cutting systems operations.
Posted: August 2, 2017
Lincoln Electric Holdings, Inc. (Cleveland, OH) completed their previously announced transaction to acquire Air Liquide Welding, a subsidiary of Air Liquide S.A. (Paris, France). Under the terms of the agreement, the purchase price was approximately $134 million, including the assumption of certain debt obligations. Lincoln Electric funded the transaction with available cash on hand.
“We are excited to welcome them into our family and complete a transaction that provides compelling value for customers, employees and shareholders,” stated Christopher L. Mapes, the chairman, president and chief executive officer of Lincoln Electric. “This transaction brings together two talented teams who share the same commitment to welding and cutting innovation and offers customers the industry’s most comprehensive portfolio of solutions, technologies and application expertise. I am confident that, as we integrate these organizations, we will benefit from enhanced technical capabilities, operational efficiencies and scale, which will further advance our ‘2020 Vision and Strategy’ goals to improve profitability and returns.”
The acquisition is immediately accretive to Lincoln Electric earnings, excluding transaction costs, at approximately $0.03 of earnings per diluted common share (EPS) per quarter, or $0.12 annually, in the first year after the acquisition, and approximately $0.06 EPS per quarter, or $0.24 annually, in the second year of operation.
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