Gas Technology & Services

The Story

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.

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

Industry

Value-added Distribution

Investment Date

October 2004

Status

Realized

Fund

I

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