TAMPA, FL — MagneGas Applied Technology Solutions, Inc., a 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 Paris, Texas. This transaction, priced at $1.25 million, paid in cash at closing, builds on MagneGas’ acquisition strategy and further expands the Company’s geographic footprint in northeast Texas along a significant industrial corridor. Earlier in the year, MagneGas acquired Green Arc Supply, launching its first commercial presence in Texas and this new acquisition further cements MagneGas’ reach in the state.
“We are pleased to expand our operational capabilities in one of the best markets in the US,” commented Ermanno Santilli, Chief Executive Officer of MagneGas. “Texas is an extremely robust market for industrial gases, particularly metal cutting fuels. Acquiring many new customers in a large batch that we can systematically convert to MagneGas2 is a powerful competitive advantage. As the world’s only renewable metal cutting fuel, we can effectively build a permanent competitive barrier around our acquired customer base simply through superior product quality. Leveraging our expanded sales team to organically grow thereafter is a very compelling growth strategy for 2019 and beyond.”
“We look forward to achieving real scale in Texas,” added Scott Mahoney, Chief Financial Officer of MagneGas. “We have already grown our monthly revenue base by more than 300 percent in 2018, and this acquisition enables our Texas team to begin to achieve profitable economies of scale. This acquisition significantly deepens our reach in Texas following the acquisition of Green Arc Supply we made earlier this year that established a commercial distribution in the state. We completed this transaction at a very attractive valuation and our newly-acquired assets are a strong contributor to our Texas growth strategy going forward.”
