Taronis Technologies, Inc. has completed the acquisition of an LA-based independently owned industrial gas distributor.
The acquired company sells industrial gases and welding supply products into the Mexican markets in Baja California and Sonora, through a relationship with an independent industrial gas operator in the region.
The transaction was structured as an asset purchase, with a cash purchase price of $2.5m.
The transaction competes the initial phase and business objective of the company’s acquisition programme initiated in early 2017.
“This acquisition is the final milestone in first phrase of our initial business plan set forth in early 2017,” said Scott Mahoney, CEO of Taronis Technologies.
“Two years ago, our board established a series of business objectives. This plan required making a series of carefully selected acquisitions in California and Texas that would enable our company to become a top five independent competitor in the most attractive markets in the US today for industrial gases. With this transition, we have completed that critical goal,” Mahoney continued.
“After completing nine acquisition in the past thirteen months, we have increased our revenue run rate by approximately 800% and believe that we can now reduce our acquisition rate.”
“Our goal was to quickly reach a scale that could sustainably fund our research and development effort, our corporate overhead, and create a largely self-funded business model.”
“We chose to take this path because we felt it would be a much more cost effective and efficient method of penetrating extremely competitive markets as compared to a much slower, more costly path through organic expansion. And as a result, we accomplished in a little over one year what could have taken more than twenty years to do organically.”
“We are now able to shift much of our operational focus to the deployment of our metal cutting fuel production capabilities across Texas and California. Our goal is to convert all of our traditional metal cutting fuel clients to our patented MagneGas metal cutting fuel product.”
“We produce the only renewable metal cutting fuel in the world, and believe it is a vastly superior product. We believe in our cleaner, safer, smarter solution, and we intend to aggressively demonstrate these benefits to our clients and the broader market in 2019 and beyond,” Mahoney concluded.