Airgas CEO Talks Takeover Bid, Earnings
Appearing on Tuesday's "Mad Money," Airgas CEO Peter McCausland explained how he fended off a hostile takeover bid and commented on the company's latest earnings results, too.
McCausland spent a year fighting a hostile takeover bid from Air Products that greatly undervalued the company. In February 2010, Air Products was willing to pay $60 a share for Airgas . Air Products later offered as much as $70 a share. Airgas executives thought the Air Products bid was too low, though and continued to fight the hostile takeover. In February 2011, Air Products finally walked away.
Through it all, Jim Cramer recommended his "Mad Money" viewers stick with Airgas' stock. He typically tells investors to step away from takeover bids, but this time was different because Airgas executives own a lot of stock and that's highly unusual these days.
Airgas executives were right to fight the hostile takeover, Cramer said. Not only is its stock up, the distributor of packaged gasses reported strong earnings results on October 27. It delivered a 1-cent beat off a $1.02 basis with 10 percent same-store sales growth.
To learn more about the hostile takeover bid, the company's earnings, as well as its future prospects, Cramer welcomed Airgas CEO Peter McCausland onto "Mad Money." Watch the video to see the full interview.