12 Oct 2017 | Aeroventic
4.5

PEARL RIVER, NY – OCTOBER 10, 2017 – Hudson Technologies, Inc. (NASDAQ: HDSN) (“Hudson”) today announced the closing of its acquisition of Airgas-Refrigerants, Inc. (“ARI”), a subsidiary of Airgas, Inc., an Air Liquide company and leading U.S. supplier of industrial gases. The transaction is valued on a gross basis at approximately $220 million. ARI is a leading refrigerant distributor and EPA certified reclaimer in the U.S. ARI distributes, reclaims and packages refrigerant gases for a variety of end uses.

The trailing twelve month revenue through June 30, 2017 for ARI was approximately $142 million, and trailing 12 month pro forma revenue of the combined business as of June 30, 2017 was approximately $275 million. The acquisition is expected to be accretive to earnings beginning one year following the close of the transaction due to certain purchase price allocation adjustments, primarily to inventory, which will impact Hudson’s 2018 Generally Accepted Accounting Principles (“GAAP”) earnings per share.

Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “We’re very pleased to have closed this transformative acquisition which represents a milestone in our Company’s history. The addition of ARI significantly strengthens our leadership position in the refrigerant and reclamation industry by enhancing our product offerings, increasing our geographic reach and customer base and enhancing our sales and distribution capabilities. This strategic combination considerably increases the scale of our company which will allow us to better serve our customers during the ongoing phase out of HCFC refrigerants and as the industry continues its transition to next generation HFC refrigerants, which have also been identified for future phase down. We welcome ARI’s experienced management team and employees and look forward to working together to serve our existing and new customers with our expanded product and service capabilities.”

The acquisition was financed with available cash balances, plus total borrowings of approximately $185 million under an enhanced asset based lending facility of $150 million from PNC Bank and under a new term loan from funds advised by FS Investments and sub-advised by GSO Capital Partners LP of $105 million. No additional Hudson equity was issued to finance this transaction.

William Blair & Co. acted as Hudson’s exclusive financial advisor for the transaction and the law firm of Wiggin and Dana LLP served as the Company’s legal counsel.

What is aeroventic?
  • What is aeroventic?

    Aeroventic is an international solution dedicated to HVACR industry. It has been designed to create an opportunity for both producers and distributors to present their business value and products worldwide. One system allowing for global reach.

  • Company profile

    Build your company value and present your competitive advantage.

    Share your catalogues, software selection programs and all business facts you consider important.

  • Product virtual showroom

    It is a great place to present all your products at once effortlessly.Each product is equipped with an option "Add to inquiry" for customer convenience. A customer sends an inquiry directly to you.

  • News & information channel

    Basically speaking, aeroventic is an equivalent of offline trade fair where you present your company and products, distribute catalogues, make contacts and develop your business.

What You Get with us?
Partners
What You Get with us?