News
PNC Equity Partners Leads Acquisition of MG Industries' Gas Technology & Services Group
Pittsburgh, PA [October, 2005] - In late October, PNC Equity Partners led the acquisition of Messer Griesheim (MG) Industries Inc. Gas Technology & Services Group (GT&S). PNC Equity Partners worked with the company's management team to purchase the business from French chemicals company, Air Liquide, just five months after Air Liquide completed its acquisition of MG Industries. Air Liquide's divestiture of GT&S was completed for strategic reasons and in cooperation with a Federal Trade Commission mandate that Air Liquide divest certain assets it acquired from MG Industries.
PNC Equity Partners provided $12.5 million of equity financing and $7.5 million of subordinated debt in support of the management buyout and is the company's largest shareholder. Senior debt was provided by Sovereign Bank.
GT&S, headquartered in Allentown, Pennsylvania, is a provider of industrial and specialty gas distribution services and related equipment throughout the Mid-Atlantic region. GT&S supplies industrial and process gasses, as well as technology to use these gases efficiently, while serving customers through a network of 32 cylinder fill plants and retail stores. The company's products include research-grade, ultra-high purity and specialty-blend gases and related specialty gas and welding equipment. GT&S gas products include nitrogen, argon, acetylene, oxygen, helium, carbon dioxide, hydrogen and other rare gases. In addition, the company rents high and low pressure cylinders, cryogenic liquid containers and small bulk tanks.
"PNC Equity Partners involvement and expertise was invaluable for us in completing this transaction," said Bryan Gentry, Chief Executive Officer of GT&S. "We are excited about the opportunity to team with PNC Equity and are pleased to have them as our largest shareholder. We are confident that this partnership will enable GT&S to achieve continued success in the years to come."
PNC Equity Partners is represented on the GT&S Board of Directors by Jack Glover and Wali Bacdayan.
Founded in 1982, PNC Equity Partners, L.P. is the private equity affiliate of The PNC Financial Services Group, Inc. PNC Equity focuses on making equity investments in middle market companies that have enterprise values between $25 million and $125 million. Our equity investments are typically in support of change of control leveraged buyouts, recapitalizations and large minority financings. PNC Equity Partners targets companies that operate in the niche manufacturing, value-added distribution and outsourced services industries.
