Described as a ‘good fit’ for the company’s merchant gas operations, Air Products has acquired North American liquid CO2 producers EPCO Carbon Dioxide Products, Inc.
EPCO is a privately-held producer and marketer of liquid carbon dioxide (LCO2) headquartered in Monroe, Louisiana. The acquisition also includes Louisiana Leasing, Ltd. of Illinois, an affiliated company that owns LCO2 distribution assets that are solely leased to EPCO.
As well as being seen as a good fit strategically, the deal will immediately vault Air Products to a position amongst the leaders in the North American LCO2 market.
Established in 1987, EPCO had revenues of approximately $60 million in 2012 and was the largest North American independent liquid CO2 company. The company focuses on the production and distribution of liquid CO2 for the food and beverage, oil field services, and chemicals markets.
Nelson Squires, vice-president and general manager – North America Merchant Gases at Air Products, said of the deal, “This acquisition is a good fit with our North American Merchant Gases set of core competencies. It also gives us immediate scale in a market that will allow us to capture additional sales of existing products by being able to offer an expanded product portfolio to existing and new customer accounts.”
“We are pleased to be acquiring a company that demonstrated continued growth through the economic challenges of the past several years. EPCO’s geographic footprint overlaps nicely with our existing infrastructure such that we expect both cost and revenue synergy benefits.”
As a result of the acquisition, Air Products adds LCO2 to its North American offerings through EPCO’s 12 CO2 purification and liquefaction plants located predominantly in the central portion of the US.
Squires added, “Not only does this acquisition make Air Products a fully-integrated supplier of bulk industrial process gases, but a combined offering of liquid nitrogen and liquid CO2 is expected to strengthen our sales of liquid nitrogen in markets we already serve.”