Airgas
Going Public & Growing Fast

JOINING THE NYSE

In December 1986 a much stronger Airgas made an initial public offering on the New York Stock Exchange, raising $4.6 million. In September 1987, the stock market having improved, an additional $15.4 million was raised. Proceeds funded an aggressive acquisition program.

“We went to New York, got them to take us, and never looked back.”

Peter McCausland

Airgas stock

1992: AIRGAS AT 10

“There was tons of travel. You would literally scratch your head and wonder where you were. I spent so much time in Texas looking at possible purchases that I was accused of developing a southern accent.”

Don Carlino, member of the acquisition team

Acquisitions took place at the rate of two or three a month, utilizing the “anchor and add on” strategy. In fiscal year 1988 there were 16 acquisitions; in 1989, 29 more; in 1990, another 24; and in 1991, another 21. In 1988, Airgas had 100 locations around the country; a year later, 200 locations; in 1990, 225; and in 1991, almost 250 locations.

By 1992, Airgas operated 25 regional hubs, including Sierra Airgas, Mountain Airgas, Midwest Airgas, New Hampshire Airgas, Lone Star, Cascade, Keystone, Gulf States, Great Lakes, Great Western and Airgas Canada. At 10 years old, the company’s annual sales topped $350 million.

Growth 1987-1992

GROWTH AT A GLANCE, 1987-1992

FISCAL YEAR

1987

1988

1989

1990

1991

1992

ANNUAL SALES (in millions)

$107.2

$130.5

$223.3

$296.2

$332.5

$351.5

ACQUISITIONS TO DATE

21

37

66

90

111

129

LOCATIONS

53

100

200

225

230

247

REGIONAL HUBS

8

12

20

22

24

25

Note: Some numbers are approximate.

Acquisitions 1982-1992

DISTRIBUTION ACQUISITIONS: FISCAL YEARS 1982-1992

EFFECTIVE DATE
ACQUIRED


BUSINESS ACQUIRED


ACQUIRING SUBSIDIARY

1982-1986

02-23-82

 1.  Connecticut Oxygen Corp.

Connecticut Airgas

01-10-83

 2.  Oxalloy

Connecticut Airgas

12-21-83

 3.  Potomac Oxygen Co., Inc.

Potomac Airgas

03-23-84

 4.  Valley Oxygen

Michigan Airgas

03-23-84

 5.  Mid-Michigan Welding Supply

Michigan Airgas

06-01-84

 6.  Wolverine Gas Products

Michigan Airgas

10-16-84

 7.  Harbor Welding Sales & Service

Potomac Airgas

05-15-85

 8.  Welding Supply & Service Co., Inc.

Southeast Airgas

06-28-85

 9.  Central Oxygen Supply Co., Inc.

Tennessee Airgas

10-19-85

10.  Hartwick Welding Supply

Michigan Airgas

01-16-86

11.  Rainey Welding Co.

Tennessee Airgas

01-23-86

12.  H & R Welding, Inc.

Florida Airgas

1987

05-30-86

 1   Baltimore Oxygen Supply Co.

Potomac Airgas

07-01-86

 2.  Southern Welding Supply

Mid-America Airgas

08-28-86

 3.  Certain Assets of Amerigas

Tennessee Airgas

08-29-86

 4.  Mitchell Welding Supply

Michigan Airgas

09-25-86

 5.  Certain Assets of BOC

Michigan Airgas

12-30-86

 6.  Capitol Welding Supply

Southeast Airgas

12-31-86

 7.  Connecticut Propane Service

Connecticut Airgas

12-31-86

 8.  West Kentucky Welding Supply

Mid-America Airgas

01-01-87

 9.  Frontier Welding Supply

Mid-America Airgas

CUMULATIVE 21

1988           

04-07-87

 1.  Southeast Oxygen & Equipment

Southeast Airgas

04-29-87

 2.  Peter's Welding & Industrial

Pacific Airgas

05-01-87

 3.  Gresham Welding Supply

Pacific Airgas

05-18-87

 4.  A&A Welders Supply

Pacific Airgas

05-19-87

 5.  Arundel Sales & Service

Potomac Airgas

05-19-87

 6.  Selma Welding Supply

Southeast Airgas

05-21-87

 7.  Portland Operations of Airco

Pacific Airgas

06-30-87

 8.  Clearwater Welding Supplies

Florida Airgas

08-13-87

 9.  Carter's Welding Supply

Florida Airgas

09-01-87

10.  Scott Welding Supply

Mid-America Airgas

10-01-87

11.  Fochtman Motor Company

Michigan Airgas

11-09-87

12.  Southern Oxygen

Potomac Airgas

01-05-88

13.  Moore Bros.

Sierra Airgas

01-16-88

14.  National Oxygen

Sierra Airgas

01-28-88

15.  Welders Supply

Mountain Airgas

03-31-88

16.  Dyco, Inc.

Pacific Airgas

CUMULATIVE 37

1989

04-01-88

 1.  Taylor-Simpkins, Inc.

Southwest Airgas

04-01-88

 2.  Kessler Distributing

Midwest Airgas

04-04-88

 3.  Cardinal Contractors

Michigan Airgas

04-19-88

 4.  New Hampshire Welding Supply

Northeast Airgas

05-09-88

 5.  Hazard Welding Supply

Mid-America Airgas

06-20-88

 6.  Industrial Gas Supplies, Inc.

Tennessee Airgas

07-01-88

 7.  Granite State Oxygen, Inc.

Northeast Airgas

07-16-88

 8.  Artesia Welding Supply

Southwest Airgas

08-01-88

 9.  West Virginia Welding Supply, Inc. & Clarksburg Compressed Gas

West Virginia Airgas

08-01-88

10.  Littrell Welding Supply

Sierra Airgas

09-01-88

11.  Standard Service & Supply

Michigan Airgas

10-01-88

12.  West Texas Welders Supply

Lone Star Airgas

11-01-88

13.  Welders Supply

Cascade Airgas

11-15-88

14.  Missouri Oxygen

Midwest Airgas

11-15-88

15.  Zane Weldcraft

Connecticut Airgas

12-01-88

16.  Ogden Welders Supply

Mountain Airgas

12-01-88

17.  Tri-State Welding Supply

Michigan Airgas

12-01-88

18.  Herr Welding Supply

Keystone Airgas

12-01-88

19.  Hardesty Welding Supply

Mid-America Airgas

12-01-88

20.  Harry F. Graves, Inc.

Northeast Airgas

12-15-88

21.  National Welding Supply

Midwest Airgas

12-31-88

22.  Tool World

Southwest Airgas

01-09-89

23.  Williams Welding Supply

Pennsylvania Airgas (Keystone Airgas)

01-27-89

24.  Moores Welding Supply

Midwest Airgas

02-01-89

25.  G.S. Parsons Co.

G.S. Parsons Co.

02-08-89

26.  Cooks Welding Supply

Midwest Airgas

03-15-89

27.  Specialty Products and Equipment

Specialty Products & Equipment

03-31-89

28.  Sooner Supplies

Sooner Airgas

03-31-89

29.  Western Welding Supply

Oklahoma Airgas(Sooner Airgas)

CUMULATIVE 66

1990

04-01-89      .

1,2.  Welding Equipment Supply Co. & Tex Air Gas Co

Lone Star Airgas

04-01-89

 3.  Clinton Sales Equipment

Connecticut Airgas

04-19-89

 4.  Kunkel Welding Supply

Midwest Airgas

05-05-89

 5.  Redding Welding Supply

Sierra Airgas

05-31-89

 6.  Al's Plumbing & Heating

Sierra Airgas

06-01-89

 7.  Beaman's Welding Supply

Sierra Airgas

06-01-89

 8.  Hydra Power

Southwest Airgas

06-01-89

 9.  Gastech

Gulf States Airgas

06-16-89

10.  Bergan Welding Supply

Midwest Airgas

07-07-89

11.  Southeastern Respiratory            

Keystone Airgas

07-12-89

12.  Unity Welding Supply

Midwest Airgas

07-13-89

13.  Anamed Medical Supply

Airgas Canada

07-24-89

14.  Western Home Oxygen

Sierra Airgas

07-31-89

15.  Rhoades Welding Supply

G.S. Parsons Co.

08-15-89

16.  K & S Enterprises

Gulf States Airgas

09-01-89

17.  Gulf Welding Equipment Co.

Gulf States Airgas

10-01-89

18.  Davis Welding

Lone Star Airgas

10-01-89

19.  Marietta Oxygen

Southeast Airgas

10-01-89

20.  Weldsco

Gulf States Airgas

12-01-89

21.  Jamco

Midwest Airgas

12-01-89

22.  Miller

Mountain Airgas

12-01-89

23.  Allied Industries

Sierra Airgas 

02-01-90

24.  Bennett

Great Lakes Airgas

CUMULATIVE 90

1991

04-01-90

 1.  Border Welding Supply Co.

Lone Star Airgas

04-01-90

 2.  Golden States Gases & Cryogenics

Sierra Airgas

05-18-90

 3.  Shepard Service Corp.

Cascade Airgas

07-02-90

 4.  C & C Welding

Gulf States Airgas

08-01-90

 5.  Brownwood Welding Supply, Inc.

Lone Star Airgas

08-01-90

 6.  King Distributing Co.

Midwest Airgas

08-03-90

 7.  Mt. Pleasant/BOC Group

Michigan Airgas

09-01-90

 8.  Waukegan Welding Supply

Great Lakes Airgas

10-01-90

 9.  Algas Welding Supply

Sierra Airgas

10-01-90

10. Advanced Welding Supply

Florida Airgas

10-01-90

11. Western Washington Welding

Cascade Airgas

10-01-90

12. Silver State Supply Co., Inc.

G.S. Parsons Co.

10-01-90

13. I & I Welding Supply

Kentucky Airgas

11-01-90

14. Hanco Oil

Midwest Airgas

12-01-90

15. Air Products - Roseburg Division

Oregon Airgas  

12-31-90

16. The Western Slope Welding Supply Co.

Great Western Airgas

12-31-90

17. The Great Plains Welding Supply Co.

Great Western Airgas

01-00-91

18. GT Energy Concepts

Michigan Airgas

02-01-91

19. Nevada Welding Supplies

G.S. Parsons

02-01-91

20. Medical Gas and Equipment

Kentucky Airgas

03-31-91

21. CDS Industrial, Inc.

Midwest Airgas

CUMULATIVE 111

 

 

1992

04-01-91

 1.  Linde Gases of the Mid-Atlantic

 Potomac Airgas

06-01-91

 2.  Mobile Welding Supply/Mon-Arc Welding Supply (Linde Gases of the South, Inc)

Gulf States Airgas

07-01-91

 3.  Bellair (Linde Gases of the Northwest)

Pacific Airgas

07-01-91

 4.  Presto (Linde Gases of the South)

Sooner Airgas

08-01-91

 5.  Rome Welding

Southeast Airgas

08-01-91

 6.  Southeast branch of MG Industries

Southeast Airgas

09-01-91

 7.  Plains Welding

Lone Star Airgas

10-01-01

 8.  Industrial Welding

Cascade Airgas

10-01-91

 9.  Valley Welding

Empire Airgas

10-01-91

10.  Northern Gases

Northern Gases

11-01-91

11.  Pipe Welding

Empire Airgas

12-01-91

12.  American Welding

Gulf States Airgas

01-01-92

13.  Newkirk Sales Company, Inc

Midwest Airgas

01-01-92

14.  Arrow-Weldit

Michigan Airgas

01-01-92

15.  Bathke Company

Michigan Airgas

02-01-92

16.  American Welding Supply, Inc.

Pacific Airgas

03-01-92

17.  Hi Plains Oxygen Equipment Co.

Lone Star Airgas

03-01-92

18.  The BOC Group (Green Bay Division)

Michigan Airgas

CUMULATIVE 129

 

 

CYLINDERS AS A SOLID INVESTMENT

Cylinders

One key to growth lay in rental fees from the gas cylinders themselves. Within four years those fees could cover the cost of a cylinder. However, the cylinders have lives of half a century or more. Cylinders can be used for decades after they are depreciated, with the freed-up cash flow going to pay down debt and make fresh acquisitions. Cylinders are also a proven means of hedging against inflation.