US Chemical Specialist Shops in Chile

US chemicals producer Air Products has agreed to acquire a 67.0% stake in Chilean industrial gas producer Indura for CLP451bn ($884m), it says. The transaction consists of CLP351bn in equity and CLP100bn in debt, and implies an enterprise value to Ebitda multiple of 13x, according to Air Products. The deal is to be completed in 2 stages, which the company declines to specify, noting only that the first portion will give it majority control and close in early July, with the second portion closing within twelve months and bringing its ownership to 67%. Air Products plans to fund the purchase with debt sourced from the US market and converted to pesos, and will have a bridge loan available for 3 months which it does not expect to draw down. The move expands Air Products’ Latin America footprint in a high growth market, and is expected to be accretive to its earnings per share starting in FY2013. There is a put option for the founding Briones family to sell the remaining interest, exercisable at fair market value in year 4 and 5. Indura has annual revenues of more than $478m, with operations in Argentina, Chile, Colombia, Ecuador, Mexico and Peru. Air Products has a presence in Argentina and Brazil and a joint venture in Mexico. It did not disclose its advisors.