Nippon Sanso Holdings Corporation (NSHD) intends to continue spending big on gas production infrastructure as well as hoping to make further acquisitions to strengthen its position in the global industrial gas market.
On its latest earnings call, the Japan-based firm, which is the world’s fourth-largest industrial gas company, said mergers and acquisitions (M&A) and capital expenditure were high on the agenda. It especially wants to expand its presence in Australia, Asia, and Europe.
In December last year, NSHD announced two buyouts in Australia and Spain respectively. The A$770m Australian deal, to buy Coregas from Wesfarmer, should grow its business there by about 50% once it completes later this year. While financial details were not disclosed, the company said that these and other deals might knock its ability to meet its 0.7x debt-to-equity target. However, executives stressed that strategic acquisitions take priority over short-term financial ratios.
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