MagneGas Applied Technology Solutions, Inc., a leading clean technology company in the renewable resources and environmental solutions industries, announced the completion of an acquisition of an independent industrial gas and welding supply distributor based in Shreveport, Louisiana. This transaction, priced at USD 1.5M (paid in cash at closing) expands the Companyâs 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 Companyâs first expansion into the medical gas business.
âThis acquisition gives us meaningful economies of scale in a very attractive market,â? said Ermanno Santilli, Chief Executive Officer of MagneGas. âShreveport 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.â?
âThis acquisition is expected to increase our monthly sales by about USD 80,000,â? said Scott Mahoney, Chief Financial Officer of MagneGas. âWe are now expecting to consistently generate close to USD 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 realize meaningful synergies.â?