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The Dax Group and its American merging partner Praxair want to address the concerns of the guardians of the competition against their gigantic merger to become the world's largest producer of industrial gases such as oxygen and oxygen. Helium
Frankfurt The industrial gas market has long been shared by a few large companies. Air Liquide, Linde, Praxair and Air Products dominate the business. But now, the German medium-sized firm Messer is making a huge leap forward: the largest private industrial gas specialist is taking over much of Linde's activities in the US and in other regions of the United States. 39, South America. "We want to become a global player," said Stefan Messer, owner and CEO of Handelsblatt.
Linde must – as part of the proposed merger with Praxair become the new world market leader – be separated from business under pressure from competition authorities. Messer was allied with the call for bids with the HVAC financial investor. The two – person consortium will pay the equivalent of about 2.8 billion euros for activities with an operating profit (Ebitda) of about 305 million euros. euros and a total business turnover of about 1.4 billion euros.
For Messer, it means jumping into a new dimension. Last year, sales rose 7% to 1.2 billion euros. The acquisition also means a return to the US market. The midsize company had withdrawn from the region as part of a restructuring in 2004 and had sold the business to Air Liquide.
Linde and Praxair quickly identified the two most important obstacles to their merger. Previously, Praxair had announced the sale of a large part of its European business to its competitor Taiyo Nippon Sanso Corporation. The Japanese pay five billion euros for activities with a turnover of 1.3 billion euros and an operating profit of about 400 million euros. euros.
Thus, Messer pays multiples much lower than those of the Japanese, ie, for example, only about twice the business figure instead of nearly four times. In industrial circles, it is emphasized that the cases are only partially comparable. For example, Messer acquires a number of individual sites and installations. The purchase was so fragmented, the economies of scale were not so easy to use. On the other hand, Praxair sells a company grouped together in a company, for example a cylinder company and a pipeline network. In addition, the European business is a high margin.
Messer and CVC founded a joint venture called MG Industries, which Messer brings to his Western European operating companies. "This is an excellent opportunity to create a new global player in the attractive industrial gas sector," said Alexander Dibelius, general manager of CVC, in the German-speaking region.
According to CVER, CVC injects own funds. "The funding is secure," said Messer. Debts should be quickly repaid by the current business, while the sale of smaller badets is also possible. An IPO or the inclusion of external shareholders is not expected at Messer. "The Messer Group remains independent."
The two partners hold 50% of the voting rights in the new joint venture, which is not consolidated at Messer. However, Messer wants to buy back the shares of CVC and integrate the company after three or four years. "It's a big challenge," Messer said. The company head Messer is convinced that the expansion to America is the right step despite the trade dispute with the United States and the difficult situation in South America. "It was a unique opportunity for us who will not come back."
The medium-sized company will now be busy integrating the new business. However, Messer pointed out that he also wanted to continue to grow with the rest of the company. "For example, we want to develop business in Asia." In five to six years, it should be as big as the American activities now acquired. He is not afraid of a possible economic downturn. "The gas industry has proven very stable for several decades."
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