Valley National Gases, LLC to Acquire Portland Welding Supply
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WASHINGTON, Pa., Dec. 21 / -- Valley National Gases, LLC announced today that it has signed a definitive agreement to acquire Portland Welding Supply, an industrial gas and welding supply and tool distributor with annual sales in excess of $30 million, 11 operating locations, and approximately 130 employees throughout Maine and New Hampshire.
Michael Ziegler, Chief Executive Officer of Valley National, stated, "Portland Welding is one of the premier distributors in the Northeast and this transaction -- our largest acquisition to date -- will significantly expand our presence into New England through access to new markets. Together, Valley National and Portland Welding will provide Portland's customers with an expanded product offering supported by Portland's talented employees and well regarded customer service. At the same time, Valley National Gases will continue to pursue its strategy of growth through selective, high-quality acquisitions by seeking complementary opportunities in New England and in other regions. We look forward to welcoming Portland Welding Supply employees to the Valley team."
Joost Thesseling, Principal at CI Capital Partners LLC, said, "The acquisition of Portland Welding Supply is the third add-on acquisition since CI Capital Partners' acquisition of Valley National Gases earlier this year. We look forward to continuing to work with Mike and his team to build the company organically and through a disciplined acquisition strategy."
Paul, Weiss provided legal counsel to Valley National in connection with the transaction. The transaction is expected to be completed by December 31, 2007.
Valley National Gases, with headquarters in Washington, PA, is a leading packager and distributor of industrial, medical and specialty gases, welding equipment and supplies, propane and fire protection equipment. Valley National Gases operates seventy-eight locations in sixteen states, with eight production and distribution centers in the eastern United States.
Valley National Gases, LLC was acquired in February 2007 by New York-based private equity firm CI Capital Partners LLC, formerly known as Caxton-Iseman Capital LLC. In addition to Valley, current CI Capital Partners portfolio companies include Ply Gem Industries, Inc., the largest North American manufacturer of residential siding, and fifth largest U.S. window manufacturer; KIK Custom Products, Inc., the largest North American contract manufacturer of branded and retailer-branded consumer products; Electrograph Systems, Inc., a leading national distributor of display technology solutions; Buffets, Inc., a large buffet restaurant chain operator in the U.S.; American Residential Services, LLC, a leading provider of HVAC and plumbing services; Prodigy Health Group, Inc., a rapidly expanding health care services company; Conney Safety Products, LLC a full-service distributor of safety products; and CoVant, a federal IT services company led by the former executives and board of directors of Anteon Corporation. CI Capital Partners' portfolio companies have combined annual revenues of approximately US$6 billion, EBITDA of approximately US$600 million and 75,000 employees.
Source: Valley National Gases, LLC
CONTACT: James P. Hart of Valley National Gases, +1-724-228-3000, jhart@vngas.com; or David Lilly of Kekst and Company, +1-212-521-4800, for Valley National Gases
