Airgas, Inc. announced the projected financial benefits of the company’s new SAP system.
Upon full implementation, Airgas expects these areas alone to yield and aggregate of $75 to $125m in incremental operating income on an annual run-rate basis. Airgas is hopeful that economic benefits will increase as the implementation progresses.
The company has been working on the transition to a single software platform since 2005. Following research, Airgas opted to leverage its decentralised operating structure through a phased SAP implementation. The decision received approval from the Airgas Board of Directors to proceed in April 2008.
Airgas Chairman and CEO Peter McCausland, said, “Today, we are pleased to be able to provide more information regarding the incremental value represented by the implementation of our new SAP system. In response to Air Products’ offer to acquire Airgas, we have consistently stated that it is all about value, and we believe the substantial economic benefits of our robust, customised SAP system should be reflected in any valuation of the company. We expect this system to further optimise the power of the Airgas platform, and are excited about the game-changing potential of this enhancement to our business.”