Industrial gas giant Taiyo Nippon Sanso Corporation (TNSC) has announced its acquisition of Australian industrial gas business Supagas Holding Pty Ltd as the company continues its overseas expansion strategy.
Once the transaction is completed next month, the Tier One player will own 100% of Supagas. Prior to the takeover, Supagas was 100% privately owned.
Supagas owns industrial gas and liquefied petroleum gas (LPG) filling stations and gas manufacturing plants including air separation units (ASUs) and carbon dioxide (CO2) plants. It operates from 17 sites across Australia, supplying oxygen (O2), nitrogen (N2), argon (Ar), CO2 and all related equipment.
Established in 1968 in the state of Victoria, Supagas recorded revenues of approximately A$100m ($73.4m) for the fiscal year ended June 2016.
The acquisition will be effected through one of TNSC’s subsidiaries, TNSC (Australia) Pty Ltd (TNSA).
TNSC first entered the Australian market via its acquisition of Renegade Gas in August 2015, with this latest move bolstering its position in the South Pacific rim country. Once the acquisition is completed, TNSC will have operations in all seven Australian states.
In a press release, TNSC stated that this takeover is a “natural fit” to add to its existing operations through Renegade Gas in the country’s market and “facilitates the establishment of a nationwide business in Australia.”
The acquisition will expand the Japanese corporation’s foothold in the country, with enhanced domestic product offering and added national accounts. “TNSC intends to continue to expand its business throughout Australia, focusing on construction, infrastructure, mining and energy sectors as they continue to grow in the future,” the media release continued.