MagneGas Applied Technology Solutions, Inc., a leading clean technology company in the renewable resources and environmental solutions industries, has successfully completed the acquisition of an independent industrial gas and welding supply distributor based in Shreveport, Louisiana.
This transaction, priced at $1.5m, paid in cash at closing, expands the company’s geographic footprint in the northern Louisiana market along a significant industrial corridor, with strong exposure to the oil and gas production and refining markets. This acquisition will also include the company’s first expansion into the medical gas business.
“This acquisition gives us meaningful economies of scale in a very attractive market,” commented Ermanno Santilli, CEO of MagneGas.
He continued, “Shreveport is an extremely strong market for industrial gases, particularly metal cutting fuels, that support the oil and gas industry. We are excited to combine the scale of our Green Arc location with our newly added team and begin driving improved profitability in a growing market.”
“This acquisition is expected to increase our monthly sales by about $80,000,” commented Scott Mahoney, Chief Financial Officer of MagneGas.
“We are now expecting to consistently generate close to $1.1m per month in sales. We also expect this acquisition to play a key role in improving the profitability of our Louisiana operations as we consolidate our operations and realise meaningful synergies,” Mahoney concluded.