Chartwell is pleased to announce Oxygen Service Company, a leading independent distributor of packaged gases and welding supplies, has been acquired by Meritus Gas Partners, a portfolio company of AEA Investors.
Oxygen Service Company (“OSC” or the “Company”) received an unsolicited offer from a market participant, compelling the board to evaluate strategic alternatives and ultimately pursue a potential sale of the Company. Chartwell was engaged to provide advisory services for the potential transaction, including execution of a market clearing process. Meritus emerged from a competitive market as the winning bidder, presenting an offer with a premium valuation and an attractive avenue for OSC to continue its growth and maintain its independence.
Throughout the transaction, Chartwell prioritized several strategic goals on behalf of the board, including:
- Achieving a premium valuation that rewarded the employee owners with a significant monetization event
- Maintaining the Company’s independence and core values by vetting all potential buyers to ensure that the chosen partner not only aligns with OSC’s values but also supports its continued independence and strong culture
- Driving future growth opportunities by identifying a partner offering significant potential for additional upside, enabling the entire employee base to reinvest and benefit from future growth
- Securing position in the marketplace and growth strategy within a rapidly consolidating industry
Chartwell was critical in the negotiation of the final purchase agreement, ensuring OSC’s interests were protected and aligned with its long-term goals as well as creating a meaningful opportunity for the ESOP participants to realize significant retirement assets.
“Chartwell’s expertise and guidance throughout this process was invaluable. Their strategic insights and ability to navigate complex negotiations allowed us to achieve our goals and secure a partner that aligns with our values. We couldn’t have asked for a better advisor in this critical moment for our company.”
– Ryan Diekow, CEO, Oxygen Service Company
About Oxygen Service Company
Based in St. Paul, Minnesota, Oxygen Service Company serves the needs of commercial and industrial users of traditional gas products. These products include oxygen, nitrogen, and argon in addition to many other gases, and are distributed throughout Minnesota and Wisconsin. Prior to the sale, the Company was 100% owned by an S Corporation ESOP with approximately 150 employee-owners.
Chartwell Contact
For additional information on this transaction, please contact Wil Becker. To learn more about Chartwell’s corporate finance capabilities, please contact Greg Fresh.