Air Products Enhances Focus on Industrial Gases with Major Sale
Air Products Completes Major $1.81 Billion Sale
Air Products (NYSE: APD) has finalized the sale of its liquefied natural gas (LNG) process technology and equipment business to Honeywell for an impressive $1.81 billion in cash. This landmark transaction marks a significant step in Air Products' evolutionary journey, aligning with its strategic mission to concentrate on its industrial gases and clean hydrogen sectors.
Strategic Focus on Industrial Gases and Clean Hydrogen
The decision to divest from the LNG process technology reflects Air Products' unwavering commitment to its core growth strategy centered around industrial gases. The decision comes as part of a larger vision to transition towards sustainable energy solutions while maximizing shareholder value.
Successful Transition of Assets and Personnel
As part of the agreement, all assets, intellectual property, manufacturing capabilities, and approximately 475 employees have transitioned to Honeywell. This includes the operational facilities such as the coil-wound heat exchanger manufacturing site, which plays a vital role in the LNG sector. The shift facilitates a smooth operational handover, allowing Honeywell to leverage Air Products’ established foundation in this industry.
Leadership Insights on the Sale
Seifi Ghasemi, Chairman, President, and Chief Executive Officer of Air Products, expressed his gratitude to the employees of the LNG division for their dedication and contributions. He emphasized Air Products' determination to enhance shareholder value through the focused execution of its growth plans in industrial gases and clean hydrogen, all while fostering an energy transition towards decarbonization.
Expert Guidance During the Transition
Throughout the sale process, Air Products enlisted the expertise of Lazard, Inc. as financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP for legal counsel. Their guidance ensured that the transaction progressed smoothly with all regulatory approvals in place.
About Air Products and Its Vision
Air Products is a global industrial gases powerhouse, operating for over 80 years and focusing on various emerging markets, energy solutions, and environmental applications. With two core pillars driving its growth strategies, Air Products continues to deliver essential gases and equipment for a multitude of industries. These include refining, chemicals, metals, electronics, and food processing.
Revenue and Market Impact
The company’s fiscal 2023 performance showcased revenue of $12.6 billion across approximately 50 countries. Presently, Air Products holds a robust market capitalization of around $60 billion. The commitment of its workforce of roughly 23,000 employees, dedicated to sustainability and innovation, is crucial to addressing the rising challenges of customers and global communities.
Innovative Solutions for a Sustainable Future
With a focus on sustainability, Air Products is leading the way in developing and operating some of the world's largest clean hydrogen projects. These initiatives support the shift toward low-carbon and zero-carbon energy solutions in heavy-duty transportation and industrial operations. By providing technologies such as turbomachinery and membrane systems, Air Products positions itself at the forefront of the energy transition.
Engagement with Community and Environment
Air Products seeks to establish a long-lasting impact on the environment and society, directly addressing contemporary challenges. The company’s innovative solutions promote enhanced sustainability and drive economic growth within communities served.
Frequently Asked Questions
What does the recent sale to Honeywell entail?
The sale involves Air Products transferring its LNG process technology and equipment business, including assets, IP, and personnel, for $1.81 billion.
Why is Air Products focusing on industrial gases?
Air Products is refocusing on its industrial gases segment to enhance shareholder value and align with its sustainability and clean hydrogen goals.
How many employees were involved in the transition?
Approximately 475 employees from the LNG division transferred to Honeywell as part of the transaction.
What is the market position of Air Products?
As of fiscal 2023, Air Products has a market capitalization of about $60 billion, underscoring its significant influence in the industrial gases sector.
Where can I find more information about Air Products?
For more information, visit Air Products’ official website or their social media channels.
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