In August 2025, Air Liquide announced its largest Asian acquisition to date—a €2.85 billion deal to purchase South Korea’s DIG Airgas from Macquarie Asia-Pacific Infrastructure Fund. The move marks Air Liquide’s strategic re-entry into the Korean market after several years of absence and aligns with its global “ADVANCE 2025” roadmap focused on decarbonization and technological innovation. Through this acquisition, Air Liquide aims to strengthen its presence in two of the world’s fastest-growing industrial gas sectors—semiconductors and hydrogen—while enhancing its competitiveness against major rivals such as Linde Korea and Air Products. The deal underscores the growing significance of the Asia-Pacific region, which accounts for nearly 40 percent of global industrial gas demand, and positions Air Liquide to capture Korea’s accelerating growth in clean energy and advanced manufacturing

​Introduction & Deal Structure: 
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On August 22, 2025, Air Liquide announced a binding agreement with Macquarie Asia-Pacific Infrastructure Fund 2 to acquire DIG Airgas for a total enterprise value of approximately €2.85 billion. The acquisition is financed through a structured bridge loan, later to be refinanced by bond issuances; a €2.15 billion multi-tranche bond has already been successfully issued to support the transaction. JPMorgan and Goldman Sachs advised Macquarie on the sale, while Lazard and BNP Paribas acted for Air Liquide. The deal remains subject to customary regulatory approvals, including review by South Korea’s Fair Trade Commission, and is expected to close in the first half of 2026 following satisfaction of closing conditions and integration planning. Upon completion, Air Liquide will assume full ownership of DIG Airgas, marking its largest acquisition in Asia and its most significant deal since acquiring Airgas Inc. in 2016.

​Industry Overview:
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The industrial gases industry encompasses the production, distribution, and application of various gases across industries, such as chemical processing, metal fabrication, energy and manufacturing. Industrial gases (oxygen, nitrogen, hydrogen, argon) are produced in large air-separation plants and delivered through either pipelines or direct on-site systems. Importantly, industrial gases are essential raw-material inputs across EV batteries, semiconductors, healthcare and chemicals. Gases like saline and argon are necessary for precise etching and deposition in the production of semiconductors, allowing the creation of microstructures. Helium, due to its small molecular size, is ideal for leak detection in electronic component.
The Asia-Pacific region accounts for over half of global industrial-gas demand. In 2023, the APAC industrial gases market generated a revenue of around €40 billion, accounting for 37.8% of the global industrial market. The region is expected to grow at a CAGR of 8-10% until 2030. This dominance can be attributed to two main causes. The APAC region has strong industrialisation and rapid expansion of infrastructure, driving demand for metals and metal fabrication which in turn necessitate gases like oxygen, argon and nitrogen. The industrial sector is also shifting towards using alternate sources of energy, which have prompted the creation of gasification plants, and coal to chemical plants and liquid. This trend has significantly contributed to the increased consumption of industrial gases.

​Buyer: Air Liquide
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Air Liquide was founded in 1902 and has since grown to be one of the world’s largest suppliers of industrial and medical gases. Its headquarters is based in Paris, although it operates in over 80 countries. Its core business segment is Gas & Services, accounting for almost 95% of group revenue.
When looking at the key highlights of the firms 2024 financial reports, Air Liquide reported strong financial performance, with an emphasis on improvements in margins and investments into future growth. The company had revenue of roughly €27 billion, which represented a +3% comparable sales growth. Operating margin grew by 110 bps, faster than its standard 70-80 bps growth in the 5 years prior. Regarding total industrial and financial investments made, Air Liquide surpassed €4 billion for the 2022-2024 period, representing a moderate increase from the 2018-2021 period. For the 2025 period, it proposed new dividends per share of €3.3, a 13.7% increase with respect to 2024. In its 2025 outlook, Air Liquide stated it was “confident in its ability to further increase operating margin, and to deliver recurring net profit growth”. This is important because it suggests ongoing efficiency measures being implemented and confidence in profitability across core operations, both of which are supported by the record year of improvement in margin experienced by Air Liquide. The company’s claims to their net profit growth shows stability and predictability in growing year-on-year, excluding any one-off items.

​Target: DIG Airgas
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Founded in 1979 and headquartered in Seoul, DIG Airgas is a one of the largest industrial gas players in South Korea. It has 60 plants, and a 220-kilometre pipeline network which is key to its operations supplying essential industrial gases to Korean electric and industrial leaders. Under Macquarie ownership, the company has expanded into new dynamic industries such as semiconductor and secondary batteries, creating strong relationships with companies like Samsung Electronics. According to Air Liquide’s CEO, François Jackow, DIG Airgas presents two main opportunities of value. Firstly, Korea is leading the next waves of innovation in sectors like clean energy and semiconductor production, meaning it allows Air Liquide to tap into a major growth market. Secondly, DIG Airgas has nearly 20 secured projects of its own, which when incorporated would strongly complement Air Liquide’s growth strategies.
The company was initially acquired by MBK partners in 2017 after a period of financial distress for roughly €1.38 billion. It was then bought by Macquarie Asset Management in 2019 for approximately €1.61 billion, bringing us to 2025, where Air Liquide has agreed to acquire DIG Airgas for an enterprise value of €2.85 billion.

​Deal Rationale
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Diving into the reasoning behind the deal, Air Liquide’s acquisition of DIG Airgas marks the French industrial gas leader’s high-conviction re-entry into South Korea, a strategic market at the crossroads of the semiconductor and hydrogen revolutions. After exiting years earlier, Air Liquide has now returned through the largest deal in the Korean industrial gas space, beating out Brookfield and Stonepeak in a three-way contest managed by JPMorgan and Goldman Sachs. Macquarie, which purchased DIG Airgas in 2019 for 2.5 trillion won, exits with a valuation exceeding 20x EBITDA, reflecting DIG’s elevated strategic positioning, supported by a production capacity exceeding 60 plants and 220 km of pipelines and exposure to a market growing at an estimated 6–7% CAGR through 2030. The company originally entered the Korean market decades ago through a joint venture with Daesung Industrial, which later became DIG Airgas, but exited after restructuring its Asian portfolio to focus on higher-margin operations elsewhere. For Air Liquide, the move represents not only a comeback to a vital Asian hub positioned as one of the world’s most strategic industrial gas markets but a calculated bet on two of the fastest-growing global verticals: semiconductors and hydrogen. 

​Impact on Air Liquide: Strengthening Core Engines and Market Position
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For Air Liquide, the acquisition directly supports its ADVANCE 2025 strategic roadmap, which prioritizes decarbonization and technological innovation, by bolstering two of its four “core growth engines”: hydrogen and semiconductors. DIG Airgas’s operational capacity and projects integrate well with Air Liquide’s €4.9 billion global investment backlog. The acquisition offers immediate EPS accretion and operational synergies, with management expecting the deal to contribute to net profit within a year of integration.
The deal cements Air Liquide’s position as a top-three player in South Korea, where the USD 12 billion industrial gas market ranks fourth globally, bringing its combined share to roughly 25–27% alongside Linde Korea and Air Products. This reinforces its Asian footprint amid regional demand normalization. The integration of DIG’s hydrogen and semiconductor gas assets amplifies Air Liquide’s ability to serve major Korean clients such as Samsung and SK Hynix, ensuring front-row exposure to the global AI-driven semiconductor capex cycle. Management targets a 460 bps margin expansion at group level by 2026, supported by DIG’s secured backlog and cost synergies. DIG’s established hydrogen pipelines align with South Korea’s 1,200-station hydrogen roadmap and national decarbonization goals, directly advancing Air Liquide’s sustainability ambitions. Combining global reach with local expertise ensures shorter lead times, greater reliability, and stronger pricing power. 

​Impact on DIG Airgas: Growth Acceleration and Strategic Validation
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For DIG Airgas, acquisition by Air Liquide offers scale, stability, and global integration. Under Macquarie’s ownership, DIG Airgas achieved steady growth, but Air Liquide’s global infrastructure opens access to 100+ international markets and accelerates capex for on-site expansion. The €2.85 billion valuation provides market confidence and secures long-term contracts with blue-chip clients Samsung and SK Hynix. The premium valuation reflects DIG Airgas’s strategic exposure to semiconductors and hydrogen. While the multiple is high relative to others in the industry, merger opportunities in the highly consolidated industrial gas sector are scarce, Jefferies analyst Chris Counihan said in a note. Air Liquide’s technical depth in hydrogen and specialty gases empowers DIG to advance Korea’s 2030 green hydrogen goals and support the next wave of semiconductor innovation, though execution risks remain.
As part of the merger, DIG gains access to Air Liquide’s expertise in high-purity gases, rare gases, and hydrogen logistics, strengthening its capacity to serve electronics, clean energy, mobility, and biopharma sectors.  The integration could strengthen competitiveness in emerging areas such as secondary batteries and carbon capture, but successful alignment with Air Liquide’s broader portfolio will determine the extent of long-term value creation.

​Competitive and Industry-Wide Implications
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Air Liquide’s return intensifies competition against Linde Korea and Air Products, both dominant incumbents. Linde may accelerate on-site projects, for example Samsung units, to defend market share, while Air Products may seek bolt-ons or joint ventures to gain ground. Regional suppliers lacking scale may consolidate or specialize, spurring an M&A wave in the sector. The premium valuation, setting a new benchmark for industrial gas M&A, is likely to encourage other mid-cap firms to sell rather than pursue IPOs. Future deals will favor cash-flow-first targets with secured project backlogs, reflecting a shift toward capital discipline and strategic synergies over speculative expansion. Success will increasingly depend on hydrogen capabilities, rare-gas expertise, and digital supply chain integration. Non-innovative players risk obsolescence as industrial gases become central to advanced manufacturing, AI infrastructure, and global decarbonization pathways. 

​Future Outlook and Key Hurdles
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The combined entity is positioned to capture South Korea’s 7% semiconductor CAGR through 2030 and exponential hydrogen demand growth. The transaction enhances Air Liquide’s recurring revenue streams. However, integration of 60 sites and 550 employees introduces cultural and operational complexities. Regionally, regulatory scrutiny over foreign ownership in strategic semiconductor supply chains remains a potential hurdle, particularly under South Korea’s industrial security framework, which screens foreign ownership in semiconductor-related assets, though approval is expected given Air Liquide’s established operational record, local partnerships and technology transfer benefits. The company's existing partnerships with Samsung and SK Hynix also provide a buffer against client concentration risk. The deal raises concerns over reliance on foreign ownership for strategic semiconductor inputs, especially as domestic players like SK Airplus (owned by Brookfield) could offer diversification. At the same time, macroeconomic volatility, including currency and energy price fluctuations, may weigh on near-term profitability, though Air Liquide’s strong balance sheet provides resilience.

​Deal Specifics and Valuation
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Air Liquide is set to acquire a 100% stake in DIG Airgas in a transaction valued at approximately €2.85 billion (₩4.6 trillion). The terms of payment have not been disclosed yet, and it is therefore not clear whether the deal will be cash, debt, or a combination of both. However, comparable deals in the industrial gases category have mainly been structured as cash transactions. To ensure adequate financial flexibility, Air Liquide is expected to initially fund the acquisition through a bridge loan, which will subsequently be refinanced via a corporate bond issuance, preserving liquidity while optimizing the long-term cost of capital. The transaction is expected to close in H1 2026, pending regulatory approvals.
Based on the FY2024 EBITDA figures, the €2.85 transaction size implies an EV/EBITDA multiple of approximately 20.2x. This relatively high multiple reflects several distinctive features of DIG Airgas’ business model, including cylinder rental revenues, high customer retention, route-density economics, and the sale of specialized equipment and consumables. When incorporating the company’s backlog of already signed projects and considering operational synergies resulting from the integration into Air Liquide’s established network, the adjusted implied EV/EBITDA falls to approximately 14.8x. This adjustment accounts for additional profitability uplift not reflected in reported standalone figures.

​Trading Comparables
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To understand the valuation of DIG Airgas more precisely, a set of comparable publicly listed companies active in the industrial and specialty gases market has been selected, considering their similar business profiles and capital structures. These include Jinhong Gas, Air Liquide, Linde, Air Products & Chemicals, Nippon Sanso Holdings, Chemtrade Logistics, and Linde India. Based on actual figures reported for the period from June 30, 2024, to June 30, 2025, the average EV/EBITDA for this peer group is 20.86x, while the median is 16.10x. From this perspective, the multiple implied by DIG Airgas’s acquisition price exceeds the median sector valuation, emphasizing the premium attached to the target’s growth trajectory and the strategic importance of strengthening Air Liquide’s presence in South Korea. In this sector, EBITDA multiples are preferred over EBIT due to significant differences in depreciation schedules linked to cylinder pooling, distribution equipment, and fleet investments, which would distort comparability. Applying the median EV/EBITDA multiple of 16.10x to DIG Airgas’ FY2024 EBITDA would imply an EV below the $3.3 billion transaction price, highlighting the magnitude of the premium being paid.

Figure 1: Actual EV/EBITDA multiples in the industry (Source: FactSet)​

Precedent transactions
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To obtain a more comprehensive understanding of DIG Airgas’ valuation, it is important to look at multiples implied by past deals in the industrial and specialty gases industry. The recent consolidation wave within the sector has generated several comparable deals, driven primarily by network integration, logistics optimization, and route-density synergies. In this case, we decided to include five major transactions that took place over the last decade, including pre-pandemic ones, in order not to be restricted to the latest macroeconomic conditions. From this sample, the average EV/EBITDA multiple is approximately 12.4x, with a median of 11.6x, both of which are lower than the multiple implied by the DIG Airgas transaction. Interestingly, this is not the usual pattern observed in valuation work, as precedent transaction multiples typically exceed comps due to control premiums and synergy expectations. However, in this case, public trading multiples exceed those observed in past transactions. This discrepancy can be explained by several structural factors specific to the industrial gases sector. Most of the relevant precedent deals were executed between 2015 and 2019, in a different macroeconomic and regulatory environment, resulting in lower valuation levels compared to today’s market. Lastly, using a sales multiple provides additional insight into the current market environment, where revenue volatility tends to be lower than operating profitability. The average EV/Revenue multiple derived from these precedent transactions is approximately 2.8x, with a median of 2.46x, closely aligned with the revenue valuation implied by the DIG Airgas transaction.

Figure 2: EV/EBITDA and  EV/Revenue precedent transactions multiples (Source: FactSet)​

​By Francesco Bianchi, Martina Caruso, Lodovico De Ferrari, Gauri Gupta

​SOURCES

• Air Liquide – Press Release
• Energy Connects
• FinanzWire
• The Korean Economic Daily
• Gas World
• News n Releases
• Bloomberg
• Financial Times
• Air Liquide FY2024 Results Presentation
• Grand View Research – APAC Industrial Gases Market Size & Outlook
• The Korean Economic Daily
• Air Liquide Acquisition Announcement
• Technavio
• Josef Gas
• Reuters