Effective October 1, 2013, the businesses of Arcet Equipment Co. of Richmond, VA and Machine & Welding Supply Co. of Dunn, NC have merged. The two companies will initially operate as wholly owned subsidiaries of a new entity known as Arc3 Gases, Inc. This 50/50 merger of equals brings together two longstanding, independent industrial gas and welding supply distributors in the southeast. The balanced structure of the merger ensures that the family ownership and management heritage of each respective company is maintained while positioning the combined businesses to further solidify and build upon their shared market position.
Parker Dillard and Emmett Aldredge, Jr. will serve as co-Chairmen of the board of directors of Arc3 Gases. “We are very excited to announce this unique merger of equals to the employees of Arcet and Machine & Welding as well as to our peers in this great industry,” the co-Chairmen conveyed in a joint statement. “The remarkably similar company cultures, our contiguous geographies, our wonderful employees and our shared commitment to taking care of customers all made this a once-in-a-lifetime opportunity. We are thrilled about this partnership.”
Emmett Aldredge, III, who will serve as co-President of Arc3 Gases along with Parker Dillard, added, “One of the great aspects of how we are coming together is that we can immediately begin the most important aspects of our integration process while at the same time having great people in place leading these two established companies to ensure we do not miss a beat in serving our valued customers. We are excited to have made this formal commitment to each other and to a shared vision for Arc3 Gases.”
Joining the co-Presidents on the Arc3 Gases executive team are Andy Ellen as Chief Financial Officer and Christopher Aldredge as Chief Operating Officer. Ray Dillard has been named General Manager of Arcet, and Jeff Johnson has been named General Manager of Machine & Welding Supply.
Leaders LLC, an M&A advisory firm with significant experience in the industrial gases industry, advised Arcet and Machine & Welding Supply on this merger and served as a neutral negotiation facilitator with respect to financial, organizational and transaction issues.
The two multi-generation family businesses brought together by this merger will operate a total of 46 retail locations in NC, SC and VA as well as a significant beverage CO2 business serving the eastern US from Delaware to Florida.