Valley National Gases, which announced a number of acquisitions last year, is now the subject of a takeover itself, as Matheson Tri-Gas has signed a definitive agreement to acquire the company.
Matheson Tri-Gas, Inc. (MTG) and CI Capital Partners LLC (CI Capital), a New York-based private equity firm, have announced the signing of a definitive agreement under which MTG will acquire fellow US company Valley National Gases.
Valley National Gases is the largest privately-held packager and distributor of industrial, medical, and specialty gases, welding supplies and propane and as recently as October 2008, announced ambitious agreements to acquire both General Welding Supply and its affiliates, and the L.P. Gas Company of West Virginia.
Now however, the successful US distributor is to become an MTG company.
MTG is the largest subsidiary of Taiyo Nippon Sanso Corporation (TNSC) - one of the top five global producers of industrial, medical, electronics and specialty gases, headquartered in Japan.
Hirosuke Matsueda, President of TNSC, said of the new purchase, “The acquisition of Valley National Gases supports TNSC’s global expansion strategy and we are thrilled that our MTG team has successfully finalised the agreement. This acquisition also reinforces our commitment to developing a national presence in the US.”
Just as optimistic about the deal is William J. Kroll, Chairman and CEO of MTG, who commented, “Valley’s history of expansion and success brought to the forefront the vision for this deal. This acquisition creates a tremendous opportunity for MTG by adding distribution capacity throughout the Eastern and Midwest regions of the US and helps to solidify our national supplier status. As we’ve demonstrated over the past several years, achieving rapid growth through select acquisitions is a priority for us.”
Completion of the transaction, which is expected to occur in the second quarter of this year, is subject to HSR review and customary closing conditions.
Meanwhile Michael Ziegler, CEO of Valley National Gases, spoke of the optimism about the deal as he said, “We are excited to become part of MTG and look forward to providing our customers with an expanded line of products and services.”
“Our operations complement one another very well, and the combination will allow MTG to establish a national distribution network. Both Valley and MTG share a commitment to the highest standards of safety and customer service, a commitment that will remain the core focus once the acquisition is complete.”