Air Products has agreed to acquire a 25% stake in the largest privately owned industrial gases company in Saudi Arabia.
Subject to approval and closing conditions, Air Products will acquire 25% of the gases and equipment division of Abdullah Hashim Industrial Gases & Equipment Co. Ltd. (AHG), a company of the privately owned Abdullah Hashim Group, based in The Kingdom of Saudi Arabia.
AHG is comprised of three businesses, including industrial gases, equipment, consumables and refrigerants. The business has three main production locations in Dammam, Jeddah and Riyadh, in addition to other distribution locations across The Kingdom.
Howard Castle-Smith, Air Products’ Vice President and General Manager of Tonnage Gases, Europe and Middle East, heralded the acquisition as an ‘attractive investment’. He added, “AHG is a long-established, respected and financially strong business, run by an experienced leadership team. Merchant gases growth in The Kingdom is high, and margins are strong, making it an attractive investment. It’s also a significant new platform from which to pursue tonnage gases opportunities in The Middle East.”
Built on firm foundations
The acquisition re-affirms an already established business partnership between the two entities. Air Products and AHG currently operate two joint ventures; an on-site oxygen and nitrogen supply plant in the Sohar Industrial Port of Oman; and, a nitrogen and hydrogen supply facility in Abu Dhabi.
AHG described the acquisition as the $quot;ideal partner$quot; to business expansion across The Middle East. Khalid Hashim, AHG’s Managing Director, “Our relative strengths – AHG in the supply of merchant gases and Air Products in large scale tonnage plants – make us stronger together. Of course, Air Products is a leader in merchant gases in many other parts of the world, and I expect us to benefit from their capability in new technologies and product innovation that we will offer to our customers and prospects.”
Abdullah Hashim Group was founded in 1955 and is owned and operated by the Hashim family. The industrial gases business is a combination of liquid/bulk, pipeline products and a range of packaged gases products.
Air Products built the first air separation unit (ASU) in the Middle East in the 1950s and has 40 years of operating experience in the region.