) announced the acquisition of two core industrial gas and
welding supply distributors - Metroplex Service Welding Supply,
Inc and Excel Welding & Industrial Supplies, Inc - for an
Following the acquisition, Metroplex Service Welding Supply's
locations in Fort Worth, Decatur, Gainesville, Burleson, and
Mineral Wells, Texas and 47 associates will be integrated into
Airgas' Southwest region operations. On the other hand, Excel
Welding & Industrial Supplies' Philadelphia and Pennsylvania
locations along with 10 associates will become a part of Airgas'
The two businesses with annual sales of more than $35 million
complement Airgas' portfolio of products and services. The
acquisition will strengthen the company's competitive position in
each of these regions.
The company has grown historically through a combination of
organic growth initiatives and acquisitions in both its core and
adjacent lines of business. The company continues to acquire
businesses in order to expand its geographic coverage and
strengthen its national network of branch-store locations.
Since its inception, Airgas has made over 400 acquisitions. In
fiscal 2012, the company acquired 8 businesses with
aggregate annual sales of approximately $106 million. Since the
beginning of the current fiscal year, Airgas has completed 15
acquisitions with aggregate annual revenues of more than $94
Airgas posted adjusted earnings of $1.05 a share in the second
quarter of fiscal 2013 (ended September 30, 2012), which came in
at the lower end of the management guidance of $1.05 -$1.09 and
compared favorably with $1.03 earned in the year-ago quarter. The
result, however, missed the Zacks Consensus Estimate of
Revenues in the reported quarter rose 4% year over year to
$1,229.6 million, missing the Zacks Consensus Estimate of $1,253
million. Same-stores sales were up 3%, with hardgoods gaining 1%
and gases and rent growing 4%.
Management expects adjusted earnings per share (excluding
one-time items) for the third quarter of fiscal 2013 to increase
8% to 14% to a range of $1.05 to $1.11. For fiscal 2013, the
company expects adjusted earnings per share (excluding one-time
items) to increase 8% to 12% to the range of $4.45 to $4.60 from
$4.11 in fiscal 2012.
The company is focusing on implementing SAP across its
distribution channel with nearly 70% of the business already
running on SAP. Airgas remains confident that SAP implementation
will enable it to realize its full economic benefits and help it
to serve its customers better. Airgas currently retains a
short-term Zacks #2 Rank (Buy).
Pennsylvania-based Airgas, through its subsidiaries,
distributes industrial, medical and specialty gases, as well as
hard goods in the U.S. The company competes with
Air Products & Chemicals Inc.
AIR PRODS & CHE (APD): Free Stock Analysis
AIRGAS INC (ARG): Free Stock Analysis Report
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