GIC takes minority stake in German gas specialist Messer
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GIC has invested in a minority stake in Messer as part of a strategic partnership.
PHOTO: GIC
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FRANKFURT - German industrial gases company Messer said on Tuesday that Singapore sovereign wealth fund GIC has invested in a minority stake in the business as part of a strategic partnership.
The proceeds from the investment will help Messer take full control of its Messer Industries joint venture, financing the acquisition of shares from previous minority shareholder CVC Capital Partners.
Messer will become the sole owner of Messer Industries, bringing all of its activities under one roof.
Messer posted sales of €4.16 billion (S$6.03 billion) with core earnings of €1.17 billion in the past financial year.
The joint venture included the majority of Linde’s former gases business in North America as well as the business activities of Linde and Praxair in South America, which both groups had to sell in the course of their merger.
It generated €2.59 billion turnover in the past financial year, with core earnings of €749 million.
“The global market for industrial gases is… a durable industry and will see new opportunities from the green transition in the long term,” said Mr Henry Ormond, deputy head of private equity in Europe at GIC.
CVC’s exit will be completed by the end of 2023. Both this transaction and GIC’s investment are subject to regulatory approvals.
“Messer will grow… in the coming years, both organically and through targeted acquisitions – and thus, as the world’s largest privately held industrial gases specialist, become the No. 1 dynamic challenger to the industry’s big three,” said Messer chief executive Bernd Eulitz.
Bloomberg on Tuesday first reported that Messer was nearing a stake sale to GIC, valuing the German company at more than €12 billion including debt. BLOOMBERG
