Airgas

Airgas enhances the value of its products with expert applications assistance and helps maximize the value of your purchases through a variety of options in handling, delivery and storage. We will help you plan and establish the right methodologies on-site at your location and provide the permanent or transitional services to help you operate at the highest levels of safety, quality, productivity, and cost-efficiency. Peter McCausland forms Airgas as a holding company for independent packaged gas distributors. After 120 acquisitions over ten years, Airgas approaches revenues of $400 million. Airgas expands product list with Rutland Tool and Supply and IPCO Safety acquisitions. Acquisition of Puritan Medical Products strengthens medical gases business; acquisitions top 300. McCausland formed Airgas as a holding company for Connecticut Oxygen and other independent packaged gas distribution companies and hired a colleague from Messer Greisheim to manage the company. Over the next few years Airgas purchased several small independent gas distributors in Virginia, Michigan, and elsewhere. The timing coincided with a wide availability of such companies, started by veterans of World War II who approached retirement in the early 1980s. Since their children pursued other careers, these entrepreneurs sold their businesses happily. While Airgas sustained a high level of debt to fund acquisitions, strong cash flow and profitability of the businesses paid the debt. With 17 acquisitions completed over four years, operations in ten states generated revenues of $25 million in 1986. The company's first major expansion occurred through a reverse merger with Werco, Inc., a $68 million supplier to the industrial gas industry. Chiswell Perkins, former owner of Werco, became CEO of the combined company, renamed simply Airgas, until his retirement; McCausland took that position in March 1987. Taking a friendly approach to acquisition, Airgas succeeded by retaining existing management, allowing for local control yet integrating companies into a cohesive, larger whole. A decentralized management structure provided the basis for the company's success in a business oriented to small-scale sales and service requirements. The pooling of intellectual efforts contributed to success at the corporate level, as well. For instance, as insurance and regulatory issues became more complex, consolidation of small companies into a larger organization provided greater protection from risks unique to the industry. Airgas found willing sellers as a high level of industry accidents led to bankruptcy for companies involved in an industry self-insurance fund. Airgas implemented its own captive insurance program, but sought to reduce accidents and risk. A task force of subsidiary managers created SAFECOR, for safety, compliance, and risk management, addressing regulations of hazardous materials by the U.S. Department of Transportation, the Occupational Safety and Health Administration, and other regulatory agencies. As an incentive to local success McCausland offered managers stock in the subsidiaries they operated; in 1992 the stock could be exchanged for Airgas stock based on the subsidiary's contribution to profits. Airgas supported internal growth at the store level in several ways. High-volume wholesale prices provided by Airgas created a wider margin for profitability and competitive pricing at the local level. As the company grew rapidly in certain markets, Airgas implemented training and education programs to ensure management and sales staff knowledgeable about packaged gas and related hard goods. Airgas increased its inventory of welding safety equipment and supplies which sold well in conjunction with welding gases. The company diversified into bulk and specialty gases, finding new customers in medical and biotechnology companies, and became a distributor of carbon dioxide used for beverages. The spring 1997 acquisition of American Dry Ice increased the c