Industrial gas distributors Central McGowan and Minneapolis Oxygen, both in the upper Midwest region of the US, have merged their businesses.
The deal will see the two companies continue to operate under their respective brands for now, but to begin to merge back-office functions.
Kevin Falconer, President of Minneapolis Oxygen, said the transaction reflected mutual respect and shared goals.
Minneapolis Oxygen operates five locations, including Minneapolis–Saint Paul, , Western Wisconsin, and the Duluth/Iron range.
Joe Francis, CEO of Central McGowan, called the deal a historic milestone. The transaction marks the company’s second merger, following its first in 1965, when McGowan Welding acquired Central Welding to create the current brand and business.
“Together, we’re uniting our shared values of family ownership, community involvement, and a focus on delivering service to our customers,” Francis said.
There are around 700 independent distributors supplying a significant share of the US industrial gas market. This number has shrunk in recent years due to consolidation.
This activity is being primarily driven by the larger distributors picking up smaller players to expand regional or portfolio capabilities, or by private equity-funded entities like Meritus Gas Partners that are investing in the sector to help partner companies scale more rapidly and build capability.
Minneapolis Oxygen is notable for having a 20% stake in the air gases business Absolute Air. A group of five distributors are involved, with Absolute Air operating an air separation unit (ASU) in Faribault, Minnesota, with a 300 tons-per-day capacity. The plant has been operational since early 2023.
Other partners in Absolute Air are A-OX Welding Supply, Huber Supply, Mississippi Welders Supply, and Toll Gas & Welding Supply.
Wit the merger, the enlarged business will retain the same stake in Absolute Air as Minneapolis Oxygen has always held.
