Airgas Announces Letter Of Intent To Purchase Kanox, Inc.

Airgas, Inc. (NYSE: ARG) today announced it has signed a non-binding letter of intent to acquire Kanox, Inc., a Kansas-based distributor of packaged gases and welding hardgoods. Airgas currently owns 25% of the outstanding stock and would purchase the remaining shares from private shareholders. The companies are working toward signing a definitive purchase agreement and anticipate closing the transaction before mid-calendar-year, subject to customary closing conditions.

The business to be acquired generates about $23 million in revenues annually Kanox, which is headquartered in Hutchinson, KS, operates nine locations in Colorado, Kansas and Oklahoma and employs about 120 people.

"Kanox has built a strong, multi-state distribution network with roots that go back to its founding in 1946, and we are very excited about the prospects of welcoming Kanox people to our organization at closing," said Airgas Chairman and Chief Executive Officer Peter McCausland. "Three Colorado branches would be integrated with Airgas Intermountain and the remaining six branches would be integrated with Airgas Mid South. Our people in both of these regional companies look forward to working with Kanox on a smooth transition for employees and customers."

"Kanox is very interested in finding an outcome that will work best for our people, our customers, our suppliers and our shareholders. This proposed transaction with Airgas will do just that," said Kanox Chairman and CEO Norman L. Krause. "Airgas is interested in our people and our locations and we look forward to completing the negotiations and closing the transaction. Until then, I want to emphasize that there will be no interruption in the service Kanox now provides for its customers."