SAN JOSE, USA: Air Products & Chemicals Inc. has announced that it will increase its offer to purchase all of the outstanding shares of Airgas Inc. The company has now offered $65.50 per share in cash.

This amount is a premium of more than 50 percent over the closing price of Airgas' shares on Feb. 4, 2010, the day before Air Products announced its proposal to acquire Airgas.

John E. McGlade, Air Products chairman, president and chief executive officer, said, the company has provided Airgas shareholders with a clear path to completing a transaction, and we now need a strong mandate from the independent shareholders in electing the Air Products nominees and approving our by-law proposals at the September 15 Annual Meeting. 

"Our increased offer delivers a premium of over 50 per cent in cash to Airgas shareholders, removing all risks and future uncertainties.  All principal closing conditions have been satisfied.  After more than 10 months of delay, there is no reason for the Airgas Board to refuse to negotiate a deal with us now.  We look forward to the vote of Airgas shareholders and are confident they will make the right choice and vote their GOLD proxies for three outstanding independent directors and for all our by-law proposals," he said.

During the first offer time period, Airgas Inc. had confirmed that Air had commenced an unsolicited tender offer to acquire all outstanding common shares of Airgas at $60.00 per share in cash. Airgas, which is the largest U.S. distributor of industrial, medical, and specialty gases, and hardgoods, has fought off the bid. Air Products is, however, engaging in a proxy battle and seem determined to acquire the company.

Air Products is also fighting back and is engaged in a proxy battle with Airgas.

The revised offer and withdrawal rights will expire at 12:00 midnight New York City time on October 29, 2010, unless extended.