Airgas Acquires Central Welding Supply near Dallas, and Houston-based Texas Industrial Gas
November 05, 2007 at 08:00 AM EST
Airgas, Inc. (NYSE:ARG) today announced it has acquired Central Welding Supply, Inc. (CWS), an industrial packaged gas distributor with three locations south of Dallas, TX. Also effective November 1, 2007, it acquired the assets and operations of Texas Industrial Gas, Inc. (TIG), with one location in Houston, TX.
Both acquired businesses, which together generated nearly $6 million in revenue in calendar 2006, have been integrated with Airgas Southwest, one of the regional companies within Airgas. The transactions bring the total number of acquisitions by Airgas in fiscal 2008 to 10, with acquired annual sales of $400 million.
“We are delighted to welcome the 18 associates from Central Welding Supply, the 10 associates from Texas Industrial Gas, and all the loyal customers they serve,” said Brent Sparks, president of Airgas Southwest, headquartered in The Woodlands, near Houston.
The CWS acquisition includes a five-acre property in Ennis, TX, where CWS was headquartered and operated a palletized cylinder fill plant built in October 2006. It also included two branches in Terrell and Stephenville, TX.
The company was founded in 1998 by Mark Miller and Alan Stewart. They, another key employee, Jeff Palmer, and the other CWS associates have taken roles with Airgas Southwest.
“Mark will serve as a sales manager and help us build business in the rural area south of Dallas, where he has had much success in recent years. Alan will remain in charge of the Ennis fill plant, which will help us better serve customers south of Dallas. And Jeff will help us throughout our region as a specialty gas specialist with his expertise,” said Sparks.
“All of us are pleased to join forces with Airgas at such an exciting time,” said Miller, formerly the president of CWS. “This sale will create new opportunities for our people and allow us to strengthen our relationships with our customers by offering a full range of products, including safety products.”
In the TIG acquisition, Airgas Southwest is adding a fill plant and retail store on the south side of Houston, providing easy access to areas around Houston. The company was started in 1971 by Rebecca and Melvin Trail, who will work with Airgas to ensure a smooth transition for TIG’s customers and associates.
“Texas Industrial provides us with a good retail location for ‘walk-in’ business, which complements other Airgas Southwest locations in the Houston area. It also gives us great opportunities to improve routing and logistics efficiencies, since both Airgas and TIG are serving customers throughout the metropolitan area,” said Sparks.
“After more than 35 years of loyal service to our customers, we are very pleased to complete this transaction, which will allow our people and our customers to go forward with the industry leader,” said Melvin Trail,” who had served as president of TIG.
About Airgas, Inc.
Airgas, Inc. (NYSE:ARG), through its subsidiaries, is the largest U.S. distributor of industrial, medical, and specialty gases, and hardgoods, such as welding equipment and supplies. Airgas is also one of the largest U.S. distributors of safety products, the largest U.S. producer of nitrous oxide and dry ice, the largest liquid carbon dioxide producer in the Southeast, and a leading distributor of process chemicals, refrigerants, and ammonia products. More than 14,000 employees work in over 1,100 locations, including branches, retail stores, gas fill plants, specialty gas labs, production facilities and distribution centers. Airgas also distributes its products and services through eBusiness, catalog and telesales channels. Its national scale and strong local presence offer a competitive edge to its diversified customer base. For more information, please visit www.airgas.com.
This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, statements regarding: integration of the operations of Central Welding Supply, Inc., and Texas Industrial Gas, Inc.; the expectation of improving our ability to serve customers in their respective areas; the ability to offer a broad range of products; and the ability to improve routing and logistics. We intend that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors and should not be regarded as a representation by us or any other person that the results expressed therein will be achieved. Important factors that could cause actual results to differ materially from those contained in any forward-looking statement include: our ability to successfully integrate the former Central Welding Supply and Texas Industrial Gas operations, including retention of customers and employees; supply availability and cost pressures; the Company’s ability to identify, consummate and successfully integrate future acquisitions; an economic downturn; increased competition; customer acceptance of the Company’s products; adverse changes in customer buying patterns; adverse changes in general economic conditions; political and economic uncertainties associated with current world events; and other factors described in the Company’s reports, including Form 10-K dated March 31, 2007 and other forms filed by the Company with the Securities and Exchange Commission.