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Air Products & Chemicals to buy 67% stake in Chile's Indura for $884 mln

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Air Products & Chemicals (NYSE:APD) said Tuesday it has inked a deal to acquire a 67 per cent majority stake in South American industrial gas company Indura S.A. for $884 million.

The transaction is expected to expand Air Product’s market growth opportunities in the region, as well as add to its earnings per share in fiscal 2013.

The deal is anticipated to close by early July, subject to customary conditions.

Chilean Indura operates in Argentina, Chile, Colombia, Ecuador and Peru and has a distribution network in Central America, Bolivia, Canada, U.S.A. and Uruguay, securing its position as the largest independent industrial gas company in Latin America.

By purchasing a large stake in Indura, Air Products will become the second largest industrial gas producer in Latin America, it said.

Air Products already has existing interests in Latin America, through its wholly-owned businesses in Argentina and Brazil and its joint venture, Grupo Infra, headquartered in Mexico.

The company will extend its Latin American presence to 12 countries, it said.

"Air Products' investment in Indura continues our strategy to expand our global presence in high growth regions with strong local partners," said Air Products’ chairman, president and CEO, John E. McGlade.

"By leveraging Indura's local leadership and Air Products' global expertise, we expect to better serve key global customers and further expand our growth opportunities in one of the world's most promising markets."

Indura is headquartered in Santiago, Chile with annual sales of $478 million. Its regional presence includes over 20 production plants, 40 filling sites, and more than 100 retail outlets.

The company’s integrated gas and retail business includes liquid bulk, small on-sites and packaged gases.

"Joining the Air Products family will position Indura to benefit from the technologies, experience and best practices of a successful global player in the industrial gases industry," said Hernan Briones Goich, chairman of Invesa, the holding company of the Briones family which is the controlling shareholder of Indura.

Air Products provides a portfolio of products, including, atmospheric gases, process and specialty gases, performance materials, equipment and technology. It supplies over 40 countries with services to the energy, environment and emerging markets.

In fiscal 2011, the company had sales of roughly $10 billion.

Shares of Air Products increased 1.90 per cent to $81.21 Tuesday Morning.

Quick facts: Air Products & Chemicals, Inc.

Price: 206.97 USD

NYSE:APD
Market: NYSE
Market Cap: $45.61 billion
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