Home » Valley National Gases to Acquire Reynolds Welding Supply
Valley National Gases to Acquire Reynolds Welding Supply
August 30, 2005
Valley National Gases Incorporated, Washington, PA, has entered into a formal agreement to acquire Reynolds Welding Supply Company, Inc. and its subsidiaries, Welders Supply Company, Inc. and Twin City Oxygen Company, Inc. The companies are industrial gases and welding supply distributors, with a total of six operating locations, five in South Central Minnesota and one in Southeastern South Dakota. Aggregate annual sales for all three companies is $20 million. Valley National reported sales for its fiscal year ended Jun. 30 were $167.7 million, an 8.6% increase over last year.
The Reynolds Companies provide us with the opportunity to participate, with a strong presence, in the states of Minnesota and South Dakota," said Valley National Gases' Vice Chairman and Chief Executive Officer William A. Indelicato. "Although these businesses are not contiguous with Valley's current operations, we believe the size and quality of all three companies provide us with an excellent new base of operations in the upper Midwest.
"This acquisition fits well with our strategy of effectively distributing products and services across an expanding geographic marketplace. As a large regional distributor, we estimate the three Reynolds companies collectively rank between the 20th and 30th largest independent distributor in the U.S. This acquisition firmly reestablishes our ability to grow through selective, quality acquisitions, and do so in a meaningful way. We will continue to actively pursue acquisition candidates that fit our profile for growth."
Valley National Gases is a packager and distributor of industrial, medical and specialty gases, welding equipment and supplies, propane and fire protection equipment. The company operates 67 locations in 12 states, with eight production and distribution centers in the eastern U.S. During the last eight years Valley National Gases, Inc. has acquired 34 distributors, adding in excess of $100 million in annual sales.