MagneGas Corporation has created a new wholly-owned subsidiary to carry out the company’s aggressive growth and acquisition strategy.
The newly-formed MagneGas Welding Supply, LLC entity will hold all current and future assets related to the company’s gas and welding supply retail business, including all future industrial gas and welding supply acquisitions and Equipment Sales and Services, Inc. (E.S.S.I.), a welding gas and supply company that the Florida-based business acquired in late 2014.
The creation forms part of MagneGas’ strategy to grow its sales through organic expansion and accretive acquisitions of other welding gas supply companies.
As Scott Mahoney, Chief Financial Officer of MagneGas, clarified, “It has been a clear path to self-sustained organic growth in 2017. We believe the parent organisation is now ready to fully focus on a concrete growth plan using a clearly defined acquisition strategy.”
“The parent organisation is now ready to fully focus on a concrete growth plan using a clearly defined acquisition strategy”
Scott Mahoney, Chief Financial Officer of MagneGas
“The creation of MagneGas Welding Supply is one of the many steps undertaken by the executive team to prepare for the execution of this strategy. We believe we have the opportunity to being systematically consolidating a meaningful position in this space over the coming quarters and for the next several years.”
It is understood that MagneGas will target growth initially in Florida and Indiana where the company already has an organic sales force, as well as the “strongest industrial markets” in the US.
In addition, the company revealed that it has identified a number of potential acquisitions. Whilst further details have not yet been publicised, MagneGas has disclosed that it will be looking for a strong existing management teams, stable customer bases, consistent profitability and scalable addressable markets.