Linde to pay $4.6bn for Lincare Holdings Linde, the German industrial gas producer, has agreed to pay $4.6bn to acquire Lincare Holdings, a US provider of oxygen and respiratory homecare services. The two parties have signed a merger agreement according to which Linde will acquire all outstanding shares of Lincare via a cash offer. IN Industrials Linde's offer of $41.50 per common share represents a 64 per cent premium on Lincare's stock price before FT Alphaville first reported news of the transaction on Wednesday and a 22 per premium on its closing price of €34 on Friday. The transaction volume includes around $800m in assumed debt, a spokesman said. The acquisition would further expand Linde's healthcare activities by bolstering its footprint in the valuable US homecare market. In January Linde agreed to buy the European unit of Air Products in a €590m deal. Linde has identified healthcare as a key area for investment. The business is attractive for industrial gas companies due to its fast growth and high margins. Commerzbank told clients last week that the acquisition would be a "good fit" for Linde from a strategic viewpoint. Homecare is a fast growing market niche for industrial gases companies, driven by healthcare cost cutting. Treating a patient with lung disease at home is far cheaper than in a hospital," analyst Stephan Kippe said. Lincare's homecare respiratory services include oxygen therapy, nebulisers and enteral therapy, where patients are fed by tube. The Florida-based company last year generated $1.8bn in revenues and $177m in net income. Lincare was the subject of an auction process in recent weeks, according to people close to the deal. Although Lincare has now recommended the Linde offer to shareholders it is not clear if another bidder could yet emerge. The two parties are due to release further information on the deal later on Monday. Linde plans to fund the transaction via a $4.5bn acquisition loan, plus cash and plans to refinance the purchase through debt and equity issuance. The German company achieved €13.7bn in sales last year and has around 50,000 employees. Its industrial gases are used in sectors ranging from energy to steel and chemical processing. A source said Lazard was among the advisers working on the deal. The offer is subject to regulatory approval and is expected to close in the third quarter of fiscal 2012.