Linde renamed Coregas after Wesfarmers takeover

Specialty gas business Linde Gas Australia Ltd is to be renamed Coregas Ltd, with Wesfarmers completing its purchase of the company today, for a total of $500 million.

The new company will operate as a stand-alone business alongside existing gas and power business units within the Wesfarmers Energy division.

Linde chief executive Dieter Krupp will remain in that role with the company, reporting to Wesfarmers Energy managing director Tim Bult.

The business was bought from German company The Linde Group following an undertaking given to the Australian Competition & Consumer Commission as a result of its global merger with The BOC Group plc.

When the deal was announced, Wesfarmers said in a statement Linde Gas Australia had achieved sales of approximately $100 million and an EBITDA of $37 million - excluding royalties - in the financial year ended December 31.

Revenue for the 10 months to October 31 increased about 7 per cent to $88 million, and Wesfarmers said there was substantial scope for growth.

Linde has a planned roll out of new liquefaction capacity and other minor capital projects during 2007, costing about about $20 million, which Wesfarmers said will create additional opportunities for earnings growth over the short to medium term.

The full text of a company announcement is pasted below

Wesfarmers Limited today announced that it had completed the purchase of Linde Gas Pty Ltd, a major participant in the Australian industrial gas market, for $500 million, subject to completion adjustments.

Under Wesfarmers ownership, Linde Gas Pty Ltd will be re-named Coregas Pty Ltd and will operate as a stand-alone business alongside existing gas and power business units within the Wesfarmers Energy Division.

The Managing Director of Wesfarmers Energy, Mr Tim Bult, said that a business integration plan had been developed and would now be implemented.

"We very much look forward to welcoming the employees of the Coregas business into Wesfarmers Energy and as part of the broader Wesfarmers group of companies."

Mr Dieter Krupp, who has led the business through a period of steady growth over a number of years, will continue as Chief Executive Officer, reporting to Mr Bult.