Activist hedge fund Elliott Management has reportedly taken a stake in the French industrial gas company Air Liquide. This move by Elliott, known for its aggressive activist campaigns, suggests it sees potential for changes or improvements within the company, which has historically been characterized by "family capitalism" governance and a long-term focus.
Air Liquide, a CAC 40 giant with a market capitalization around $110 billion, operates globally in 72 countries, serving over 4 million customers. The company is a key player in industrial gases, healthcare services, and is increasingly involved in clean energy. In 2024, it reported revenues of $28.4 billion, with an operating margin of 17.4% and a net profit of $3.2 billion. Its recurring EPS has grown by 8-10% annually over the past decade.
The company's resilience stems from its diversified business model across Industrial Merchant (40% of sales), Large Industries (27%), Healthcare (18%), and Electronics (15%). Air Liquide's strategic focus areas include the hydrogen economy, semiconductor sector, and decarbonization, with significant investments in green hydrogen electrolysis and carbon capture solutions. Elliott's involvement could challenge Air Liquide's traditional aversion to short-term noise and potentially push for faster returns or strategic shifts.
