) has entered into an agreement to acquire the assets and
operations of The Encompass Gas Group, Inc. Financial terms of
the agreement were not disclosed. Subject to customary closing
conditions, the acquisition is expected to be completed on Nov 1,
Headquartered in Rockford, Encompass is one of the largest
privately owned suppliers of industrial, medical, and specialty
gases and related hardgoods in the U.S. Encompass offers bulk gas
and micro bulk systems as well as fully integrated pipeline
system packages. It operates in eleven locations and has more
than 130 employees in Illinois, Wisconsin and Iowa.
The acquisition will help in the development of the quality of
service and breadth of product offering of both companies.
Encompass' wide range of services and commitment toward branch
and product development will also help in attaining the needs of
a diverse customer base.
Airgas has grown through acquisitions and has set a target of
$150 million in acquired sales for fiscal 2014. The company
remains optimistic about reaching its target on the back of a
strong pipeline. Airgas is optimistic about the long-term
prospects of the U.S. manufacturing and energy industries and
Airgas recently announced the reorganization of its Southwest
distribution region in two divisions - the Gulf Coast region and
the Southwest region. The reorganization underscores Airgas'
commitment to an operating model made for customers' satisfaction
and fulfillment of their needs.
Airgas' strong brand identity, size and scale advantage, an
extensive U.S. distribution network and a diverse customer base
position the company for sustainable long-term growth.
Furthermore, renewed focus on day-to-day selling, share buybacks
and SAP implementation will provide a solid tailwind going
Based in Pennsylvania, Airgas, through its subsidiaries,
distributes industrial, medical and specialty gases as well as
hardgoods in the U.S. The company also markets its products and
services through e-business, catalog and telesales channels.
Airgas currently carries a short-term Zacks Rank #3 (Hold).
Other chemical stocks that are worth a look include
L'Air Liquide SA
Air Products & Chemicals Inc.
). All these hold a Zacks Rank #2 (Buy).
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