Allentown’s Air Products to acquire GE’s gasification business, technology

Air Products, an industrial gases company based in Allentown, announced Monday that it signed an agreement to acquire General Electric Company’s (“GE”) gasification business.

The acquisition would enable Air Products to expand its synthesis gas (syngas) solutions product offerings and build, own and operate gasification projects around the world.

“Acquiring GE’s gasification technology and business would complement our other recently completed gasification technology acquisition and alliance formation,” Seifi Ghasemi, chairman, president and CEO at Air Products, said. “Together, they would give Air Products a broad range of product and service offerings and solutions to provide syngas for chemicals, fuels, power or refining. Together, the transactions would allow us to further extend our onsite industrial gas production model to include syngas supply, and enable cross-selling opportunities for our other technologies and product offerings.”

These cross-selling opportunities could include air separation units, pressure swing absorbers, carbon monoxide cold box equipment as well as other business opportunities in plant support and cryomachinery.

The gasification business being acquired includes GE’s share of its 50/50 joint venture (JV) with China Shenhua Coal to Liquid and Chemical Company, Ltd., a subsidiary of China Energy Group, which provides technologies for gasification projects in China. The acquisition also includes over 1,000 patents relating to GE’s gasification technology and approximately 50 total employees and JV employees.

“The addition of GE’s technology, deep customer and application knowledge, and talented and dedicated employees to Air Products’ gasification portfolio will enhance our ability to provide complete onsite solutions for the entire gasification facility,” Ghasemi said. “We look forward to having the employees of the GE gasification business join the Air Products team as we focus on creating value for our customers in this dynamic market.”

Financial terms of the transaction are not being disclosed. The acquisition is expected to close following the receipt of any necessary regulatory approvals and satisfaction of customary closing conditions.