Air Liquide to Buy South Korea’s DIG in $3.3 Billion Deal
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Air Liquide SA agreed to buy DIG Airgas in a 2.85 billion euro ($3.3 billion) deal as it seeks to expand in South Korea.
The French industrial gases producer is acquiring the privately held business from Macquarie Asset Management, according to a statement Aug. 22. DIG will contribute to Air Liquide’s profit as soon as a year after integration, the company said.
Air Liquide ranks No. 1 on the Transport Topics list of the top industrial gases carriers.
The takeover will strengthen its industrial gas operations in South Korea, particularly in growing fields such as semiconductors and secondary batteries, Air Liquide said. DIG has annual turnover of 510 million euros, almost 550 employees and 60 plants in South Korea, with operations in all major industrial areas.
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“Korea is leading the next waves of development in key sectors like the semiconductors industry, clean energy and mobility,” Air Liquide CEO François Jackow said. DIG has a backlog of about 20 secured projects, he added.
The deal represents a multiple of about 20 times earnings before interest, taxes, depreciation and amortization, but falls to less than 15 times when DIG’s backlog of signed projects and expected cost synergies are taken into account, according to Air Liquide.
While the multiple is high relative to others in the industry, merger opportunities in the highly consolidated industrial gas sector are scarce, Jefferies analyst Chris Counihan said in a note. “Therefore it represents a minor strategic positive.”
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Air Liquide supplies oxygen, nitrogen and hydrogen to sectors ranging from autos to food processing and pharmaceuticals. It’s looking for growth in Asia after reporting 2.59 billion euros in revenue in the region in the first half, below analyst estimates.
The deal would be Air Liquide’s largest acquisition since the $13 billion purchase of Airgas Inc. about a decade ago, according to data compiled by Bloomberg, and is expected to be completed in the first half of 2026. The gases industry has consolidated in recent years around three main participants — Air Liquide, Air Products & Chemicals Inc. and Linde Plc.
Air Products ranks No. 2 and Line No. 4 on the TT industrial gases list.
Macquarie acquired DIG, which was founded in 1979, from MBK Partners in 2020.
