LINCOLN ELECTRIC HOLDINGS INC acquires Air Liquide Welding

LINCOLN ELECTRIC HOLDINGS INC acquired Air Liquide Welding for EUR 115 million (approximately USD$134 million), including assumption of certain debt; approximately 7x EBITDA, a transaction completed in July 2017, structured as all cash (funded with cash on hand). The deal was a Carve-out (subsidiary of Air Liquide).

Air Liquide Welding operates in International Welding / Harris Products Group, is based in Six European countries and Canada (over 15,000 customers worldwide), had revenue of about FY2016 net sales approximately EUR 367 million (USD$405 million). Air Liquide Welding (ALW), a subsidiary of Air Liquide, is an established leader in welding and cutting solutions in Europe, including its European and Canadian welding and gas valve businesses, with approximately 2,000 employees across six European countries and Canada, 13 manufacturing facilities, over 15,000 customers worldwide and FY2016 net sales of approximately EUR 367 million (USD$405 million). Its product mix was roughly 62% consumables (filler metals) and 38% equipment.

The transaction expands and strengthens Lincoln's European operations and Harris Products Group, brings complementary specialty-alloy consumable brands and gas-valve products, improves channel and market access in Europe and globally, includes an exclusive global supply agreement, and advances Lincoln's '2020 Vision and Strategy' goals to improve profitability and returns.

Top-tier European welding/cutting franchise with specialty alloy brands; only dedicated welding/cutting organization among the top-3 competitors after combination. Expected synergies to generate an incremental $30 million of EBITDA per year by the fourth year of operation; accretive at ~$0.12 EPS in year one and ~$0.24 EPS in year two. Lincoln Electric (European operations and Harris Products Group)

Advisory firms were not disclosed for this transaction.