Hudson Technologies to Acquire Airgas-Refrigerants, Inc.

• Acquisition Will Provide Greater HFC Distribution, Significantly
  Enhance Customer Base; Strengthen Overall Sales & Distribution
  Capabilities
• Investor Conference Call Today at 5 P.M.

PEARL RIVER, N.Y.–(BUSINESS WIRE)–Hudson Technologies, Inc. (NASDAQ:HDSN) (“Hudson”) today announced that
it has entered into a definitive agreement to acquire
Airgas-Refrigerants, Inc. (“ARI”), a subsidiary of Airgas, Inc., a
leading U.S. supplier of industrial gases, in a transaction valued on a
gross basis at approximately $220 million, subject to closing and
post-closing adjustments.

ARI is a leading refrigerant distributor and EPA certified reclaimer in
the U.S. ARI distributes, reclaims and packages refrigerant gases for a
variety of end uses.

Potential benefits of the acquisition include:

• ARI’s HFC distribution business will favorably position Hudson as the
  industry shifts from Hydrochlorofluorocarbons (HCFCs) to
  Hydrofluorocarbons (HFCs).
• Broader customer network will provide Hudson with access to
  refrigerant for reclamation while also strengthening distribution
  capabilities.
• Adding incremental reclamation processing capacity to support the
  anticipated growth in reclamation volume from the ongoing phase out of
  HCFC (R-22) production and the future phase down of HFC production.
• Enabling Hudson to sell its state-of-the-art Global Energy Services
  offerings to a broader base of customers.
• Enhancing geographic footprint in the U.S.
• Combining two highly complementary businesses.

As of March 31, 2017, trailing 12 month pro forma revenue of the
combined business is approximately $250 million. The transaction is
expected to be accretive to earnings beginning one year following the
close of the transaction.

The acquisition will be financed with available cash balances plus
borrowings under an enhanced asset based lending facility of $150
million from PNC Bank and a new term loan from funds advised by FS
Investments and sub-advised by GSO Capital Partners LP of between $95
million and $110 million. No additional Hudson equity will be issued to
finance this transaction.

Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson
Technologies commented, “This will be a transformative acquisition for
our company, enhancing our business by providing a complementary product
portfolio, expanding our geographic footprint and customer base and
significantly expanding our sales and distribution capabilities. ARI is
a prominent refrigerant distributor in the United States and we believe
the combination of our operations will provide meaningful scale to our
business and further enhance Hudson’s leadership in the refrigerant and
reclamation industry.

“The increased scale of the combined company will allow us to better
serve our customers during the ongoing phase out of HCFC refrigerants
and positions us better to serve an expanded customer base during the
future phase down of HFC refrigerants. Additionally, this acquisition
gives us access to a significantly larger customer base and a new
audience for our Global Energy Services offerings, a growing focus of
our business which provide optimization solutions, engineering
assessments and energy management tools.”

Mr. Zugibe continued, “With the acquisition of ARI, we look forward to
leveraging our strengthened capabilities, expertise and reach to meet
the needs of an expanded customer base. We look forward to serving our
existing and acquired customers with our expanded portfolio of products
and services.”

The acquisition of ARI is subject to customary closing conditions,
including the consummation of the contemplated debt financing, and the
expiration or termination of the applicable waiting periods under the
Hart-Scott-Rodino Antitrust Improvements Act, and is currently expected
to close in 2017.

William Blair & Co. is acting as Hudson’s exclusive financial advisor
for the transaction and the law firm of Wiggin and Dana LLP is serving
as the Company’s legal counsel.

CONFERENCE CALL INFORMATION

The Company will host a conference call today, Wednesday, August 9, 2017
at 5:00 P.M. Eastern Time.

To access the live webcast and investor deck please use the following
link: https://www.hudsontech.com/investor-relations/events-presentations/

To participate in the call by phone, dial (877) 407-9205 approximately
five minutes prior to the scheduled start time. International callers
please dial (201) 689-8054.

A replay of the teleconference will be available until September 9, 2017
and may be accessed by dialing (877) 481-4010. International callers may
dial (919) 882-2331. Callers should use conference ID: 19253

About Hudson Technologies

Hudson Technologies, Inc. is a leading provider of innovative and
sustainable solutions for optimizing performance and enhancing
reliability of commercial and industrial chiller plants and
refrigeration systems. Hudson’s proprietary RefrigerantSide^®
Services increase operating efficiency, provide energy and cost savings,
reduce greenhouse gas emissions and the plant’s carbon footprint while
enhancing system life and reliability of operations at the same time.
RefrigerantSide^® Services can be performed at a customer’s
site as an integral part of an effective scheduled maintenance program
or in response to emergencies. Hudson also offers SMARTenergy OPS^®,
which is a cloud-based Managed Software as a Service for continuous
monitoring, Fault Detection and Diagnostics and real-time optimization
of chilled water plants. In addition, the Company sells refrigerants and
provides traditional reclamation services for commercial and industrial
air conditioning and refrigeration uses. For further information on
Hudson, please visit the Company’s web site at www.hudsontech.com.

Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995

Statements contained herein which are not historical facts constitute
forward-looking statements. These include statements regarding
management’s intentions, plans, beliefs, expectations or forecasts for
the future including, without limitation, Hudson’s expectations with
respect to the benefits, costs and other anticipated financial impacts
of the proposed ARI transaction; future financial and operating results
of the company; the company’s plans, objectives, expectations and
intentions with respect to future operations and services; approval of
the proposed transaction by governmental regulatory authorities; the
availability of financing; the satisfaction of the closing conditions to
the proposed transaction; and the timing of the completion of the
proposed transaction. Such forward-looking statements involve a number
of known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Such factors include, but are not limited to, changes in the laws and
regulations affecting the industry, changes in the demand and price for
refrigerants (including unfavorable market conditions adversely
affecting the demand for, and the price of, refrigerants), the Company’s
ability to source refrigerants, regulatory and economic factors,
seasonality, competition, litigation, the nature of supplier or customer
arrangements that become available to the Company in the future, adverse
weather conditions, possible technological obsolescence of existing
products and services, possible reduction in the carrying value of
long-lived assets, estimates of the useful life of its assets, potential
environmental liability, customer concentration, the ability to obtain
financing, any delays or interruptions in bringing products and services
to market, the timely availability of any requisite permits and
authorizations from governmental entities and third parties as well as
factors relating to doing business outside the United States, including
changes in the laws, regulations, policies, and political, financial and
economic conditions, including inflation, interest and currency exchange
rates, of countries in which the Company may seek to conduct business,
the Company’s ability to successfully integrate any assets it acquires
from third parties into its operations, and other risks detailed in the
Company’s 10-K for the year ended December 31, 2016 and other subsequent
filings with the Securities and Exchange Commission. Examples of such
risks and uncertainties specific to the proposed ARI transaction
include, but are not limited to: the possibility that the proposed
transaction is delayed or does not close, including due to the failure
to receive required regulatory approvals or the failure of other closing
conditions; the possibility that the expected benefits will not be
realized, or will not be realized within the expected time period; and
the ability to complete the contemplated debt financings. The words
“believe”, “expect”, “anticipate”, “may”, “plan”, “should” and similar
expressions identify forward-looking statements. Readers are cautioned
not to place undue reliance on these forward-looking statements, which
speak only as of the date the statement was made.

Contacts

Investor Relations:
Institutional Marketing Services (IMS)
John
Nesbett/Jennifer Belodeau
(203) 972-9200
[email protected]
or
Hudson
Technologies, Inc.
Brian F. Coleman, President & COO
(845)
735-6000
[email protected]