Air Liquide Targets Stronger Revenue Growth After Airgas Buy
July 06 2016 - 2:36AM
Dow Jones News
By William Horobin
PARIS--French industrial gases company Air Liquide (AI.FR) said
Wednesday it expects revenue growth to increase in the next four
years after the acquisition of U.S. rival Airgas Inc.
Last year Air Liquide agreed to pay $10.3 billion for Airgas,
which produces cylinders of gases used in manufacturing, food
production, health care and to fill helium balloons.
Air Liquide expects revenue growth of between 6% and 8% over
from 2016 to 2020 as it focuses on healthcare, the transition to
greener energy and digitalization, the company said in a
presentation of its long-term strategy.
Excluding the impact of the Airgas acquisition, revenue growth
will be around 4% to 6% in the period, marking an acceleration from
the 3.3% recorded in 2015, excluding the impact of currency
fluctuations.
Air Liquide also said that it expects 300 million euros ($331.44
million) in annual efficiency gains over the next four years in
addition to $300 million in savings from the Airgas acquisition. It
said it expects return on capital employed, or ROCE, over 10% in
five to six years.
-Write to William Horobin at william.horobin@wsj.com
(END) Dow Jones Newswires
July 06, 2016 02:21 ET (06:21 GMT)
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