Meritus Gas Partners, a portfolio company of AEA Investors‘ small business private equity team, has purchased substantially all assets of MagneGas Welding Supply – South LLC.
The acquired assets relate to MagneGas’ business in Texas, Louisiana and Indiana and include seven retail locations and a recently expanded fill plant and gas laboratory in the Dallas-Fort Worth metropolitan area. Mitchell Welding Supply LLC, Meritus’ existing operating company in the DFW area, will integrate all of MagneGas’ assets, customers and employees into its business. Jered Ruyle, former CEO of Taronis, will join the Mitchell management team as vice president of operations. The purchase was completed through a Section 363 Sale process resulting from MagneGas and its parent company, Taronis Fuels Inc., filing Chapter 11.
“The Dallas-Fort Worth market is a top 5 industrial market in the U.S., and the stretch of east Texas between the Dallas-Fort Worth Metroplex and Shreveport, La., that MagneGas serves has a vibrant, growing customer base,” says Rob D’Alessandro, Meritus’ vice chairman. “This acquisition furthers our growth plans to become the leading independent distributor in the region. We are also fortunate to inherit a high-quality gas-rich business in Indiana which gives us a jump start to build a larger business in that area.”