With a view to fortifying and differentiating product portfolio of Generated Gases product line, Air Products (APD) has acquired innovative and advanced adsorption technology assets from Xebec Adsorption, Inc. The terms of the transaction are undisclosed as yet.
The technology assets acquired encompasses intellectual property associated with structured adsorbents, beaded adsorbents and rotary valves. Furthermore, Air Products will acquire about 100 patents which would complement its current business status. In addition to the technology assets, Air Products also acquired technology center and testing facilities of Xebec in British Columbia.
Air Products is confident that with this acquisition it will have access to one of the most innovative adsorption technologies, positioning it ahead of its peers. This will also help the company in gaining entry into the new gas clean-up and purification markets.
The technology in advanced gas separation uses solid phase adsorbents to purify gases. Adsorption systems form a part of the pre-purification technology for air separation units (:ASU) for removing water and carbon dioxide, purification of hydrogen-carbon monoxide syngas, vacuum swing adsorption (:VSA) oxygen, and pressure swing adsorption (PSA) nitrogen generation.
By switching to an advanced process from the use of traditional adsorbent materials, Air Products is able to attain high adsorption unit performance. The addition of the new technology is expected to aid capabilities of adsorption technology.
With economic recovery growing more and more palpable across North America and other global markets, we become increasingly optimistic about Air Products’ prospects. Given its leading position in the gases business, the company is well positioned to capitalize on the cyclical recovery in its core industrial end-markets. It has sufficient capacity to meet the expected upturn in demand without incurring additional capital expenditures.
Based in Pennsylvania, Air Products and Chemicals Inc. make industrial gases as well as a variety of polymer and performance chemicals. It also supplies processing equipment. In addition, the company serves technology, energy, industrial and health care customers globally. Air Products also happens to be the world’s largest supplier of hydrogen and helium.
The company has built leading positions in growth markets such as semiconductor materials, refinery hydrogen, natural gas liquefaction, and advanced coatings and adhesives. It competes with the companies like Praxair Inc. (PX)and The Linde Group.
Currently, the shares of Air Products retain a Zacks #3 Rank, implying a short-term “Hold” recommendation.
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