The global industrial gas company Air Liquide is acquiring DIG Airgas. The sale price is around 3 billion euros (4.85 trillion won).
On the 22nd, according to the investment banking (IB) industry, the sellers of DIG Airgas, Macquarie Asset Management (Macquarie PE), recently selected the global gas company Air Liquide as the preferred bidder. Following the selection, a stock purchase agreement (SPA) was also signed on the same day.
In the previous bidding process, Brookfield Asset Management, Stonepeak, and others were also considered as candidates besides Air Liquide. However, Air Liquide secured the deal by presenting the best terms. The transaction is expected to be completed in the first half of next year after the approval procedures from domestic related regulations are finalized.
The seller, Macquarie PE, hoped for up to 5 trillion won, but the final acquisition price was confirmed at around 4.85 trillion won. Last year's earnings before interest, taxes, depreciation, and amortization (EBITDA) was 20.2 times, with the confirmed order backlog considered, the EBITDA multiple is 14.8 times.
DIG Airgas supplies essential industrial gases to semiconductor companies such as Samsung Electronics and SK hynix, as well as to steel companies and chemical corporations. Macquarie PE acquired the company for 2.8 trillion won from MBK Partners in 2020 and has managed it for five years.
Air Liquide is one of the largest industrial gas companies in the world, headquartered in Paris, France. In Korea, it established the predecessor of DIG Airgas, Daesung Industrial Gas, in partnership with Daesung Industrial in 1979. In 2014, it sold its equity in Daesung Holding and ended the joint venture. If the acquisition is completed, it will be the first time in 11 years that Air Liquide reclaims DIG Airgas.
François Jacko, CEO of Air Liquide, noted, "Through this acquisition, Air Liquide has once again demonstrated its strategic investment capability for profitable growth," adding, "DIG Airgas already has approximately 20 confirmed project orders, which will contribute to the group's net profit growth."