Air Liquide Completes Acquisition of DIG Airgas in South Korea
Air Liquide has announced the completion of its acquisition of DIG Airgas, a major player in the industrial gases sector in South Korea. This transaction, which concluded earlier than expected, doubles the French group's workforce in the country.
Acquisition Details
The group has finalized the acquisition of DIG Airgas, a transaction announced last August with an enterprise value of 2.85 billion euros, according to the press release. The closure of this deal occurred ahead of the initially planned schedule, thanks to the support of the Korean authorities, the company indicates. Air Liquide had signed a binding agreement with Macquarie Asia-Pacific Infrastructure Fund 2 to purchase this national leader in industrial gases. The transaction valued DIG Airgas at an EBITDA multiple of 20.2 for 2024, which was adjusted to 14.8 when considering the order book and cost synergies announced at the initial disclosure. The financing was structured through bond issues, following a transitional bridge loan.
Impact on Workforce and Market Position
This acquisition allows the group to double its workforce in South Korea and achieve a combined turnover of approximately 900 million euros in the country, according to the press release. Founded in 1979, DIG Airgas had nearly 550 employees, operated 60 plants, and had a network of 220 kilometers of pipelines. The company had achieved a turnover of 510 million euros in 2024. Air Liquide had been present in South Korea for over three decades, but this operation significantly strengthens its position in this market, the company specifies. The group thus becomes the leading player in the industrial gases market in South Korea.
Market Outlook and Strategic Synergies
The South Korean industrial gases market ranks fourth globally and is expected to double by 2035, according to data shared by Air Liquide. The country positions itself as a leader in key sectors such as semiconductors, clean energies, mobility, and biopharmaceuticals. The acquisition will bring highly executable synergies, notably secure growth through an order book that includes nearly 20 projects, the group indicates. These long-term contracts are expected to generate an additional 50 million euros in EBITDA by 2030, the press release specifies. François Jackow, CEO of Air Liquide, emphasizes that this operation accelerates the group's growth in Asia and establishes Air Liquide as a benchmark player in South Korea.
