PARIS (Reuters) - Air Liquide said it was targeting revenue growth of 6-8 percent annually over 2016-2020 as it unveiled a new strategic plan on Wednesday following the recent acquisition of U.S peer Airgas to shield itself from low growth in Europe.
The French industrial gases company also said it was aiming at delivering a return on capital employed (ROCE) in excess of 10 percent "after five to six years". Air Liquide's 2015 ROCE stood at 10.3 percent.
The group completed the acquisition of U.S firm Airgas on May 23, a $13.4 billion transaction in an effort to better compete with rivals such as Germany's Linde, Praxair and Air Products in North America.
Air Liquide said the deal would allow savings of over $300 million while the company would also achieve other cost cuts of more than 300 million euros ($332 million) on average every year in the frame of the new plan dubbed "NEOS".
"The group has acquired a new dimension following the acquisition of Airgas and thus enters a new phase," Chairman and Chief Executive Benoit Potier said, adding that he expected "moderate global growth" and "major changes related to scientific and technological advances."
Under a previous plan set out for 2011-2015, Air Liquide had sought annual growth sales of 8-10 percent and a ROCE of 12-13 percent.
Air Liquide said it would strive to maintain a Standard & Poor's "A" range rating. Following the announcement of the Airgas acquisition, the rating agency downgraded the group's rating by two notches to "A-" with a "stable" outlook.
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