07/11/2017 Lehigh Valley, Pa.
Air Products (NYSE: APD) today announced that it has acquired a majority stake in the industrial gases business of Muscat Gases Company, a leading industrial gases and liquefied petroleum gas (LPG) company in Oman. Air Products now owns the majority stake in the company’s industrial gases business called United Industrial Gas Company L.L.C, while Muscat Gases Company will retain a minority share of the business. The investment is another example of how Air Products is building and strengthening its position in the Middle East.
“We are very pleased to announce this acquisition and look forward to expanding our industrial gases business in the Sultanate of Oman. This acquisition builds on many years of good experience of working in Oman, and provides a strong platform to take our investments to new levels in support of the growing economy of Oman.” said Richard Boocock, president - Air Products Industrial Gases, Middle East, India, Egypt and Turkey. “Muscat Gases has built a leading industrial gas business in Oman serving key customers in oil and gas, healthcare, steel and other end markets. We welcome employees from United Industrial Gas Company into Air Products and look forward to working together to capture future growth opportunities in the merchant and onsite portfolio in the region.”
“Partnering with an international industrial gas company such as Air Products is a tremendous opportunity for our industrial gas business, enabling us to expand and improve our offerings to serve the needs of key customers throughout Oman,” added Ali al Rasbi, Chief Executive Officer, Muscat Gases Company. “Furthermore, as we retain a stake in the new venture, Muscat Gases Company and its shareholders will continue to benefit from the growth opportunities for industrial gases in Oman.”
Muscat Gases Company, publicly traded on the Muscat Stock Exchange, will continue to own and operate its LPG business in the country.
About Air Products
Air Products (NYSE:APD) is a world-leading Industrial Gases company in operation for over 75 years. The Company’s core industrial gases business provides atmospheric and process gases and related equipment to manufacturing markets, including refining and petrochemical, metals, electronics, and food and beverage. Air Products is also the world’s leading supplier of liquefied natural gas process technology and equipment.
The Company had fiscal 2017 sales of $8.2 billion from continuing operations in 50 countries and has a current market capitalization of approximately $30 billion. Approximately 15,000 passionate, talented and committed employees from a diversity of backgrounds are driven by Air Products’ higher purpose to create innovative solutions that benefit the environment, enhance sustainability and address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com.
About Air Products in the Middle East
Air Products has had a presence in the Middle East for more than 50 years through a combination of wholly-owned businesses and joint venture partnerships. A provider of liquefied natural gas cryogenic technology to Oman, Air Products has built, owned, and operated several air separation units and hydrogen production plants throughout the Middle East region. It operates a helium and cylinder gas filling and distribution facility, as well as a specialty gases center in the Jebel Ali Free Zone, UAE. The company’s strategic joint venture partnerships include: Abdullah Hashim, Saudi Arabia; Ajwaa Gases, Abu Dhabi, UAE; Ajwaa Gases, Sohar, Oman; and Jazan Gas Projects Company, Jazan, Saudi Arabia.
About Muscat Gases Company
Muscat Gases Company (S.A.O.G) is a leading Omani Public Limited Company with an excellent track record of serving Omani households (for LPG) and industry (for medical & industrial gases) and trading of special gases and Refrigerants for over two decades.
The company employs about 150 people and is the second largest industrial gases company in Oman. In 2016, Muscat Gases Company recorded US$25 million of sales.
Muscat Gases Company industrial gases business covers the manufacturing and sale of packaged and bulk gases including: nitrogen, oxygen, nitrogen and acetylene; and the trade of other specialty gases. The industrial gases market in Oman offers high potential for future growth.
NOTE: This release contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about earnings guidance, business outlook and investment opportunities. These forward-looking statements are based on management’s reasonable expectations and assumptions as of the date this release is furnished. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including, without limitation, global or regional economic conditions and supply and demand dynamics in market segments into which the Company sells; political risks, including the risks of unanticipated government actions; acts of war or terrorism; the inability to eliminate stranded costs previously allocated to the Company’s Electronic Materials and Performance Materials divisions, which have been divested, and other unexpected impacts of the divestitures; significant fluctuations in interest rates and foreign currencies from that currently anticipated; future financial and operating performance of major customers; unanticipated contract terminations or customer cancellations or postponement of projects and sales; our ability to execute the projects in our backlog; asset impairments due to economic conditions or specific events; the impact of price fluctuations in natural gas and disruptions in markets and the economy due to oil price volatility; costs and outcomes of litigation or regulatory investigations; the success of productivity and operational improvement programs; the timing, impact, and other uncertainties of future acquisitions or divestitures, including reputational impacts; the Company’s ability to implement and operate with new technologies; the impact of changes in environmental, tax or other legislation, economic sanctions and regulatory activities in jurisdictions in which the Company and its affiliates operate; and other risk factors described in the Company’s Form 10-K for its fiscal year ended September 30, 2016. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release to reflect any change in the Company’s assumptions, beliefs or expectations or any change in events, conditions, or circumstances upon which any such forward-looking statements are based.