Air Liquide purchases Lurgi
July 20, 2007
BY Jessica Sobolik
Air Liquide, a global leader in industrial and medical gases, acquired international engineering firm Lurgi AG from GEA Group AG in April. The transaction held an equity value of approximately 550 million euros (US$739 million), equivalent to the enterprise value of 200 million euros (US$269 million) including the assumption of Lurgi's gas position, as well as its pension and other liabilities. The transaction is subject to approval by the European and American competition authorities, according to Air Liquide.
With the acquisition, Air Liquide plans to strengthen its resources in hydrogen markets, and increase access to the coal-to-liquid and coal-to-chemicals sectors. In 2006, Lurgi had nearly 1,300 employees and total sales around 850 million euros (US$1 billion). It held a portfolio of technologies for the production of hydrogen, synthesis gas and biofuels (ethanol and biodiesel). Its main engineering centers are in the United States, Germany, Poland, India and South Africa. Lurgi is currently supplying process technology for three ethanol projects in the United States: Central Illinois Energy Co-op, Gateway Ethanol LLC and Panda Hereford Ethanol LP. It also recently began to provide process technology for Houston Biodiesel LLC.
Before the acquisition, Air Liquide operated five engineering and construction centers in the United States, France, Japan, China and India with 1,500 employees. The company designs, develops and builds its own gas production units, and has worked with Lurgi in the past, most recently on projects in Saudi Arabia and Malaysia.
Lurgi continued its business dealings after the acquisition. In June, company representatives attended an inauguration ceremony celebrating the start-up of Europe's largest biodiesel plant in the state of Saxony-Anhalt, Germany. The facility will produce more than 200,000 tons of biodiesel from rapeseed. Lurgi supplied the facility's equipment and utilities for client Gate GmbH, and headed commissioning and employee training. Also in June, the company started the first stage of a two-stage pilot plant that will produce synthesis gas from biomass through pyrolysis in Frankfurt am Main, Germany. Lurgi and Forschungszentrum Karlsruhe GmbH have partnered in the first stage of the project. Preparatory research has already been performed at Lurgi's Research and Development Center in Frankfurt.
With the acquisition, Air Liquide plans to strengthen its resources in hydrogen markets, and increase access to the coal-to-liquid and coal-to-chemicals sectors. In 2006, Lurgi had nearly 1,300 employees and total sales around 850 million euros (US$1 billion). It held a portfolio of technologies for the production of hydrogen, synthesis gas and biofuels (ethanol and biodiesel). Its main engineering centers are in the United States, Germany, Poland, India and South Africa. Lurgi is currently supplying process technology for three ethanol projects in the United States: Central Illinois Energy Co-op, Gateway Ethanol LLC and Panda Hereford Ethanol LP. It also recently began to provide process technology for Houston Biodiesel LLC.
Before the acquisition, Air Liquide operated five engineering and construction centers in the United States, France, Japan, China and India with 1,500 employees. The company designs, develops and builds its own gas production units, and has worked with Lurgi in the past, most recently on projects in Saudi Arabia and Malaysia.
Lurgi continued its business dealings after the acquisition. In June, company representatives attended an inauguration ceremony celebrating the start-up of Europe's largest biodiesel plant in the state of Saxony-Anhalt, Germany. The facility will produce more than 200,000 tons of biodiesel from rapeseed. Lurgi supplied the facility's equipment and utilities for client Gate GmbH, and headed commissioning and employee training. Also in June, the company started the first stage of a two-stage pilot plant that will produce synthesis gas from biomass through pyrolysis in Frankfurt am Main, Germany. Lurgi and Forschungszentrum Karlsruhe GmbH have partnered in the first stage of the project. Preparatory research has already been performed at Lurgi's Research and Development Center in Frankfurt.
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