Valley National Gases provides pure, mixed and liquefied industrial gases, propane and specialty gases, welding and cutting equipment, and has a fire safety equipment division.

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The company provides pure, mixed and liquefied industrial gases, propane and specialty gases, welding and cutting equipment, and has a fire safety equipment division. It has 90 locations in 18 states with many sites in West Virginia, Ohio and Pennsylvania.

"We are definitely committed to an acquisition strategy for growth," Ziegler says. It recently acquired Portland Welding Supply, a leading industrial gas and welding supply and tool distributor based in Maine. Ziegler says VNG was interested in the company because it would allow it to expand into New England as well as a new sector, tool distribution.

"Our hope is to grow Portland Welding's business by adding product lines where we have expertise, such as residential propane or micro-bulk gas supply," he says.  "They also have an Internet tools business, which we might expand through promotion at our other Valley locations."

This is the fourth acquisition completed by the company since its acquisition by CI Capital Partners. VNG also acquired Mitchell Industrial Supply, an industrial gases and welding supplies distributor in Elkhart, Ind., in July 2007; Allegheny Welding and Industrial Supply Inc., an industrial gases, propane, and welding supplies distributor with locations in Johnstown, Greensburg and McKeesport, Pa., in October 2007; and Wolfenden Industries, an industrial, medical and special gases distributor with three locations in Northeast Ohio in January.

These acquisitions equal $43 million in acquired revenues, a 20 percent increase from 2007, said CI Capital Principal Joost Thesseling, in a statement. "We continue to see attractive acquisition opportunities in the large and fragmented U.S. packaged gas market and look forward to continuing to support Mike and his team in building the operations of this business," he said.

Billion-Dollar Goal
Ziegler says small and medium sized industrial gas distributors looking to sell their businesses are attracted to VNG because it is committed to keeping original employees on staff and offers the best chance for success. "Two of the bigger players, Airgas and Praxair, have a major share of the market," he explains. "The rest of the market, roughly 50 percent, is held by independent distributors, and a large number of companies are looking to sell every year. Not every family-run company has an heir, and a lot of them are looking for an opportunity to cash out or simply to take the business to the next level and make it more successful."

The company 's current sales run rate is $300 million a year, so it is consistently taking steps to reach the $1 billion mark. For example, its current objective is to reach the half-billion mark within two years. "It's very achievable," Ziegler says. "A lot of that will depend on the economy, and the election may result in changes in the capital gains tax rates."

VNG will also offer more to its customers, President and COO Howard Hubert adds. "We want to offer new products, new services and align with partners who will allow us to bring more value at the customer level," he says.

50 Years Strong
The company is celebrating its 50th anniversary this year by hosting open houses for employees and customers, as well as promoting the milestone with its anniversary logo on promotional products, Hubert says. "We also formed employee-focus teams to plan celebrations throughout the year and reflect on how we grew and the lessons learned," he adds.

In 1958, VNG began as a family-owned company in Wheeling, W.Va., its current administrative headquarters. It focused on industrial gases before it grew organically and expanded into specialty gases, propane and bulk gases. Today, it is the third-largest company in its industry in the U.S., and Ziegler says its size enables it to offer more products and services to its customers. "We also make a more concentrated effort to be a trend-setter and a leader," he adds.

The company's main focus is safety and quality. "Providing good service and being a cost efficient supplier are part of our core attributes," Hubert says. VNG looks for those same characteristics from its supply base. "We look for creative ideas and commitment," he says. "We want to make sure all needs are satisfied and we establish long-term relationships with both customers and vendor partners."

VNG is a very "entrepreneurial" company and looks for employees who are interested in helping the company grow. "We are looking for people who want to get things done," Ziegler says. "We are informal and encourage employees to speak up and let us know how we can improve the company. We have an open culture and are always looking for people to step up."

Hubert says the company is pretty fast-paced and has a lean management staff with 12 people, including safety, operations, product management and regional management. "There is no bureaucracy," he says. "We're very focused on the customer and have a lean corporate structure that works closely with our field teams to provide superior customer service."