Air Products to Acquire GE's Gasification Business and Technology

Proven Technology Enhances Company Capabilities and Expands and Complements Recent Gasification Technology Acquisition

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Nov 05, 2018, 13:00 ET

LEHIGH VALLEY, Pa., Nov. 5, 2018 /PRNewswire/ -- Air Products (NYSE: APD) today announced it has signed an agreement to acquire General Electric Company's ("GE") gasification business. This transaction will allow Air Products to expand its synthesis gas (syngas) solutions product offerings and its presence in build, own and operate gasification projects around the world.

Financial terms of the transaction are not being disclosed. The acquisition is expected to close following the receipt of any necessary regulatory approvals and satisfaction of customary closing conditions.

"Acquiring GE's gasification technology and business would complement our other recently completed gasification technology acquisition and alliance formation. Together, they would give Air Products a broad range of product and service offerings and solutions to provide syngas for chemicals, fuels, power or refining. Together, the transactions would allow us to further extend our onsite industrial gas production model to include syngas supply, and enable cross-selling opportunities for our other technologies and product offerings," said Seifi Ghasemi, chairman, president and chief executive officer at Air Products.

As part of Air Products' overall syngas solutions offering, these cross-selling opportunities could include air separation units, pressure swing absorbers, carbon monoxide cold box equipment, as well as generate other business opportunities in plant support and cryomachinery.

The gasification business being acquired by Air Products includes GE's share of its 50/50 joint venture (JV) with China Shenhua Coal to Liquid and Chemical Company, Ltd., a subsidiary of China Energy Group, a world-class energy company. The JV, formed in 2011, provides technologies for gasification projects in China. The acquisition also includes over 1,000 patents relating to GE's gasification technology, which has been deployed at over 90 sites, with over 240 gasifiers, and represents over 36,000 MW_th (thermal megawatts) of syngas production. The GE gasification technology has an extensive track record of processing solid, liquid, gaseous, and blended feedstocks. Air Products looks forward to continuing to support existing and future gasification licensees. Gasification technologies offer a way to take varied lower-value feedstocks and convert them in a lower-emission manner into syngas. Air Products can then provide this syngas to customers to make higher-value products.

"The addition of GE's technology, deep customer and application knowledge, and talented and dedicated employees to Air Products' gasification portfolio will enhance our ability to provide complete onsite solutions for the entire gasification facility. We look forward to having the employees of the GE gasification business join the Air Products team as we focus on creating value for our customers in this dynamic market," said Ghasemi. The acquisition includes approximately 50 total employees and JV employees.

In the company's sale-of-gas business model, Air Products finances, builds, owns, operates and maintains the gas production plant, so its customers can focus their attention and capital on their primary business. Ghasemi cited examples of the larger-scale, multi-billion-dollar gasification projects that are enabled and supported by the company's gasification technology acquisitions. The large projects include, for example, the Lu'n, Juitai and Yankuang Group projects in China, as well as the Jazan project in Saudi Arabia.

For more information about Air Products' full offerings for gasification and syngas go to:
www.airproducts.com/SyngasSolutions.

About Air Products
Air Products (NYSE: APD) is a world-leading Industrial Gases company in operation for over 75 years. The Company's core industrial gases business provides atmospheric and process gases and related equipment to manufacturing markets, including refining and petrochemical, metals, electronics, and food and beverage. Air Products is also the world's leading supplier of liquefied natural gas process technology and equipment.

The Company had fiscal 2017 sales of $8.2 billion from continuing operations in 50 countries and has a current market capitalization of about $35 billion. Approximately 15,000 passionate, talented and committed employees from a diversity of backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and address the challenges facing customers, communities and the world. For more information, visit www.airproducts.com.

NOTE: This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's reasonable expectations and assumptions as of the date of this release regarding important risk factors. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including risk factors described in the company's Form 10K for its fiscal year ended September 30, 2017.

SOURCE Air Products