industrial gases

After 27 Add-Ons, CI Exits Tech Air

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CI Capital Partners has agreed to sell Tech Air to Airgas, a subsidiary of Paris-based Air Liquide.

Tech Air is a packager and distributor of industrial, medical and specialty gases, welding equipment and supplies.  The company has more than 45,000 customers that operate across a range of industries and operates through 50 branch and fill locations in the Northeast, Southeast, Southwest and West. Tech Air has approximately 550 employees and annual revenues of $190 million. The company is headquartered in Danbury, CT (www.techair.com).

Tech Air was acquired by CI Capital in December 2010 and during the course of its ownership completed 27 add-on acquisitions. Recently completed add-ons were the November 2018 buy of Collingdale, PA-based Scully Welding Supply, a distributor of propane, industrial and welding supplies, and industrial gases; the August 2018 buy of Kemah, TX-based Speed Industrial Supply, a distributor of industrial and welding supplies serving the Galveston Bay area near Houston; the February 2018 buy of North Hollywood, CA-based Leeper Brothers, distributor of medical gases – oxygen, nitrous oxide, helium, and nitrogen – used by dentists and oral surgeons; and in April 2018 it acquired Denver, CO-based Colorado Distributing, a distributor of hardgoods to the power and utilities sectors.

Airgas, the buyer of Tech Air, is a supplier of industrial, medical and specialty gases, as well as hardgoods and related products; safety products; and ammonia products and other process chemicals. The company, headquartered near Philadelphia in Radnor, PA and led by CEO Pascal Vinet, has more than one million customers, 18,000 employees and over 1,400 locations. Airgas (www.airgas.com) is a subsidiary of publicly-traded and Paris-based Air Liquide (Paris: AI) (www.airliquide.com). Air Liquide acquired Airgas in May 2016 for more than $13 billion, a multiple of 14.4x Airgas’ 2014 adjusted EBITDA.

“Growth through acquisition has been a key component of Airgas’ business model and remains a core part of our long term strategy,” said Mr. Vinet. “We look forward to welcoming the Tech Air team to Airgas, and integrating their complementary capabilities and resources to enhance service for our customers.”

CI Capital Partners invests from $25 million to $100 million in middle market companies in the following sectors: business services, consumer services, distribution, government services and defense, and light manufacturing. Since its founding in 1993, CI Capital and its portfolio companies have made more than 315 acquisitions representing over $10 billion in enterprise value. The firm is based in New York (www.cicapllc.com).

Harris Williams (www.harriswilliams.com) was the financial advisor to Tech Air.

© 2019 Private Equity Professional | February 7, 2019

CI Closes 21st Add On for Tech Air

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Tech Air, a portfolio company of CI Capital Partners, has acquired Gases & Arc Supply, a distributor of welding & industrial supplies and industrial gases. This is the 21st add-on acquisition completed by the company since being acquired by CI Capital in December 2010.

Gases & Arc serves industrial companies in the construction, pipe and metal fabrication industries. The company was founded in 1995 by Bob Backowies and Jim O’Connor and is based in a 20,000 sq. ft. facility in Denver (www.gasesandarc.com). Both Mr. O’Connor and Mr. Backowies will remain actively involved with the company under Tech Air ownership.

Tech Air is a packager and distributor of industrial, medical and specialty gases, welding equipment and supplies.  The company has more than 10,000 customers that operate across a range of industries and operates through 36 branch and fill locations in the Northeast, Southeast, Southwest and West.  Tech Air was founded in 1935 and is headquartered in Danbury, CT (www.techair.com).

“The acquisition of Gases & Arc creates a new region for Tech Air in Colorado, complementing Tech Air’s existing regions in the Northeastern, Southeastern, Southwestern and Western United States,” said Myles Dempsey, Jr., CEO of Tech Air.

“Tech Air’s significant investments in people and infrastructure have allowed the company to consummate 21 add-on acquisitions to date,” said Joost Thesseling, Managing Director at CI Capital. “We are thrilled for Tech Air to establish a presence in Colorado and look forward to Tech Air expanding in that region with other add-on acquisitions. We remain committed to supporting the company and its acquisition strategy.”

CI Capital Partners invests from $25 million to $100 million in middle market companies in the following sectors: business services, consumer services, distribution, government services and defense, and light manufacturing. Since its founding in 1993, CI Capital and its portfolio companies have made more than 190 acquisitions representing over $8 billion in enterprise value. The firm is based in New York (www.cicapllc.com).

© 2017 Private Equity Professional | February 1, 2017

CI Capital Partners Buys Liquid Technology

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Tech Air, a portfolio company of CI Capital Partners, has completed the add-on acquisition of Florida-based Liquid Technology Corporation. This is the 16th add-on acquisition completed by Tech Air since being acquired by CI Capital Partners in December 2010.

Liquid Technology supplies a full line of specialty gases and mixes throughout the country. In addition to its specialty gases, other products include gas detector, hydrogen sulfide monitors, combustible gas detectors, and gas bottles. Liquid Technology is headquartered near Orlando in Apopka, FL and has an operating facility near Houston in Pasadena, TX (www.liquidtechcorp.com).

Tech Air is a packager and distributor of industrial, medical and specialty gases, welding equipment and supplies.  The company has more than 10,000 customers that operate across a range of industries.  With the closing of the these acquisitions, Tech Air now operates through 36 branch and fill locations in the Northeast, Southeast, Southwest and West.  Tech Air was founded in 1935 and is headquartered in Danbury, CT (www.techair.com).

“The acquisition of Liquid Technology will greatly enhance Tech Air’s specialty gases production capabilities and its locations in Orlando and Houston perfectly complement our existing specialty gas production in California,” said Myles Dempsey, Jr., Chief Executive Officer of Tech Air.

With the acquisition of Liquid Tech, Tech Air now has the ability to supply specialty gas customers throughout the US. “Tech Air has made tremendous progress in executing its acquisition strategy,” said Joost Thesseling, Managing Director at CI Capital. “Myles and the rest of the management team have transformed the company into a multi-regional player and established a reputation as a preferred buyer.”

CI Capital Partners invests from $25 million to $100 million in middle market companies in the following sectors: business services, consumer services, distribution, government services and defense, and light manufacturing. Since its founding in 1993, CI Capital and its portfolio companies have made more than 190 acquisitions representing over $8 billion in enterprise value. The firm is based in New York (www.cicapllc.com).

In a separate transaction, Tech Air has also signed an agreement to acquire the specialty gas distribution assets of Linden, NJ-based JW Goodliffe & Son. Closing of this transaction is expected to take place in the fourth quarter.

© 2016 Private Equity Professional • 9-30-16

CI Capital Completes 15th Tech Air Add-On

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Tech Air, a portfolio company of CI Capital Partners, has completed the add-on acquisition of Gas & Alloy Supply Co. This is the fifteenth add-on acquisition completed by Tech Air since being acquired by CI Capital Partners in December 2010.

Gas & Alloy Supply Co. (GASCO) is a distributor of gases and welding supplies to companies in the Dallas-Fort Worth area.  The company’s owners – Kirk Foote and Bill Carpenter – will remain actively employed with the company after closing. GASCO is based in Dallas (www.gascotx.com).

Tech Air is a packager and distributor of industrial, medical and specialty gases, welding equipment and supplies.  The company has more than 10,000 customers that operate across a range of industries.  With the closing of the GASCO acquisition, Tech Air now operates through 31 branch and fill locations in the Northeast, Southeast, Southwest and West.  Tech Air was founded in 1935 and is headquartered in Danbury, CT (www.techair.com).

“We are thrilled to announce the addition of GASCO to our rapidly growing Southwest region, led by Jeff Palmer, the President of Tech Air of Texas.  GASCO is known for outstanding customer service and technical capabilities and will benefit from Tech Air’s growth capital, access to a broad base of suppliers and administrative and operational support,” said Myles Dempsey, Jr., Chief Executive Officer of Tech Air.

“We are very proud of Tech Air’s ability to form partnerships with the owners of other industrial gas distributors to successfully execute its acquisition strategy,” said Joost Thesseling, Managing Director at CI Capital Partners. “With fifteen acquisitions completed, we are very pleased with the company’s progress and will continue to support Myles and the rest of the Tech Air team as they continue to execute their growth strategy.”

CI Capital Partners invests from $25 million to $100 million in middle market companies in the following sectors: business services, consumer services, distribution, government services and defense, and light manufacturing. Since its founding in 1993, CI Capital and its portfolio companies have made more than 160 acquisitions representing over $7 billion in enterprise value.  The firm is based in New York (www.cicapllc.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-2-15

CI Capital Partners Acquires McGinnis Welding Supply

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Tech Air, a distributor of industrial, medical, and specialty gases, and a portfolio company of CI Capital Partners, has acquired McGinnis Welding Supply.

McGinnis Welding Supply is a distributor of industrial, specialty and medical gases. The company was founded in 1932 and has locations in Wichita Falls and Vernon, TX (no website found).

“We are pleased with the acquisition of McGinnis Welding Supply, which adds to Tech Air’s growing presence in North Texas.  We remain committed to our strategy of acquiring high-quality regional distributors throughout the continental United States and are actively seeking additional acquisitions,” said Myles Dempsey, Jr., Chief Executive Officer of Tech Air.

Tech Air is a packager and distributor of industrial, medical and specialty gases, welding equipment and supplies.  The company has more than 10,000 customers that operate across a range of industries.  Tech Air was founded in 1935 and is headquartered in Danbury, CT and operates through 27 branch and fill locations in the Northeast, Southeast, Southwest and West (www.techair.com).

Tech Air was acquired by CI Capital Partners in December 2010 through the firm’s second investment fund, CI Capital Investors II, LP. McGinnis Welding Supply is the ninth add-on acquisition for the company since being acquired by CI.

“Myles Dempsey and his team have done a great job to position Tech Air as a preferred acquirer in the industrial gas distribution market.  The acquisition of McGinnis is the latest example of Tech Air’s ability to provide owners with attractive opportunities to remain actively engaged in the management of the business after the acquisition,” said Joost Thesseling, Managing Director at CI Capital Partners.  For instance, with the closing of the transaction, McGinnis Welding Supply is now a new division of Tech Air of Texas, and its former owner, Joey Davis, is the General Manager of this division.

CI Capital Partners invests from $25 million to $100 million in middle market companies in the following sectors: business services, consumer services, distribution, government services and defense, and light manufacturing. Since its founding in 1993, CI Capital and its portfolio companies have made more than 125 acquisitions representing over $7 billion in enterprise value. CI Capital’s existing portfolio consists of companies which collectively generate annual revenue of approximately $4 billion, EBITDA of approximately $400 million, and employ approximately 14,000 people. The firm is based in New York (www.cicapllc.com). 

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-20-15

Graphite Capital Exits Dominion Technology Gases

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Praxair has acquired Dominion Technology Gases Investment Limited, a supplier of gases used in the offshore oil and gas industry and a portfolio company of Graphite Capital.

Dominion Technology Gases is a supplier of diving, welding, industrial, laboratory and calibration gases and associated equipment to the offshore oil and gas industry. Annual revenues for the company are approximately $55 million. The company was founded in 1988 and is based in Aberdeen, Scotland (www.dominion-gas.com).

Graphite Capital invests in middle market leveraged buyouts with valuations up to £200 million. The firm is currently investing Graphite Capital Partners VII with £475 million in capital, and a co-investment fund with capital of £110 million. Graphite Capital is headquartered in London (www.graphitecapital.com).

Praxair (NYSE: PX)is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2012 sales of $11 billion. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. The company is based in Danbury, CT (www.praxair.com).

“The addition of Dominion significantly expands Praxair’s oil and gas related capabilities to global customers in the offshore energy segment,” said Scott Kaltrider, vice president, helium and oil and gas services for Praxair. “The Dominion team has built a premier, service-oriented business with 25 years of recognized commitment to superior customer service. With significant growth forecasted in offshore oil and gas exploration and production, we look forward to building on this outstanding service platform and significantly expanding growth through Praxair’s global footprint.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-29-13