Gas Technology & Services
Gas Technology & Services is a leading provider of industrial and specialty gas distribution services and equipment throughout the mid-Atlantic region. GT&S products include nitrogen, argon, and other rare gases. In addition, the Company rents pressure cylinders, cryogenic liquid containers, and small bulk tanks.
PORTFOLIO STORY
How We Partnered
Transaction Dynamics
A partnership with management to acquire a corporate divestiture from Air Liquide. Air Liquide sought a divestiture for strategic reasons and in corporation with a mandate by the Federal Trade Commission.
Investment Thesis
- Market leader in mid-Atlantic region
- Strong and experienced management team with significant industry experience
- Large, diversified customer base with high switching costs and recurring revenue
- Solid organic growth opportunities and potential for acquisitions
- Significant equity investment from management team
Incline Value Enhancement
- Moved cylinder sourcing offshore (Korea)
- Reduced Capital Expenditures by 35%
- Consolidated vendors and signed new gas contracts
- Improved operational efficiencies through route density and management
- Grew revenue 32% over three-year period
- Hired consultant to implement supply chain initiatives
- Sold GT&S to strategic acquirer with full support and participation from management
HEADQUARTERS
Malvern, PA
STATUS
Realized
INDUSTRY
Value-added Distribution
INVESTMENT DATE
October 2004