Air Products buys stake in Chile firm

Looking to increase its operations in South America, Air Products & Chemicals Inc., of Allentown, said Tuesday that it agreed to pay $884 million to buy a 67 percent stake in Indura S.A., which is based in Santiago, Chile.

Air Products had two regional headquarters in Europe and three in Asia, but this move expands the South American presence, which previously took the form of subsidiaries in Brazil and Argentina and a joint venture in Mexico.

"Air Products' investment in Indura continues our strategy to expand our global presence in high-growth regions with strong local partners," John E. McGlade, chairman, president and chief executive officer of Air Products, said in a statement.

"Indura is a very well-known and respected brand that represents a quality business, strong leadership and dedicated employees. By leveraging Indura's local leadership and Air Products' global expertise, we expect to better serve key global customers and further expand our growth opportunities in one of the world's most promising markets," he said.

Besides Air Products, Airgas Inc., which is based in Radnor, and Praxair Inc. are the most prominent industrial gas producers in the United States.

Air Products said this investment would make it the second-largest industrial gas producer in Latin America, with a presence in 12 countries. Indura had $478 million in annual sales and 2,300 employees, though it was unclear how many might lose their jobs as the companies are integrated.

The Briones family, which has been the controlling shareholder of Indura, has an option to sell its remaining stake in the company.

Air Products chief financial officer Paul Huck said in a conference call with analysts that the company would use a bridge loan to acquire Chilean pesos, issue corporate debt, and then inject equity into the company to pay for the transaction.

Shares of Air Products rose $1.98, or 2.5 percent, to close at $81.58 Tuesday.