Air Liquide Targets Stronger Revenue Growth After Airgas Buy

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 [e-mail]

(END) Dow Jones Newswires

July 06, 2016 02:21 ET (06:21 GMT)

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