The other day I wrote an article about Hudson Technologies acquiring one of my favorite refrigerant companies of the past, AirGas/Refron Refrigerants. This article can be found here, but basically in that article I went over how as the years pass by that the number of refrigerant distributors and declaimers across the country are shrinking and shrinking. It seems like it is like that with everything nowadays though. Everything is consolidating into these huge conglomerates. Refrigerant is no exception. Looking at the future I only see two major refrigerant re-claimers/distributors left: Hudson Technologies and A-Gas Americas.
These two companies have been buying and gobbling up all of the little guys left in the country. It seems like every other month there is a new acquisition. A few days ago I received the news alert that A-Gas was purchasing Diversified Pure Chem Refrigerants. Pure Chem is a company known for offering high refrigerant buyback rates and a no-hassle, no surprise, buyback program. Taken from their website, their motto is: “Get more than you expect when you reclaim direct.”
One of the main selling parts of PureChem, or DPC, is that there is no middleman. They buyback and reclaim the refrigerant themselves in their forty-thousand square foot facility in Texas. Their main office is in Texas well out of the city of Rhome. Along with their office and reclaiming facility they also have thirteen distribution points across the country.
The goal of this acquisition was to give A-Gas Americas a stronger distribution foothold within the United States and to also increase their ability for reclamation by adding PureChem’s massive forty-thousand square foot facility.
A-Gas Americas is a recent new comer to the American market. In 2012 RemTec, A-Gas, and Coolgas all formed together as one to form the new company A-Gas Americas. Ever since then they have been expanding and acquiring other refrigerant companies like crazy. Their parent company, A-Gas International, is out of the United Kingdom and have assisted in funding and expanding here in the states as well.
Conclusion
While it is sad to see another acquisition happen in the marketplace it is always worth looking at the bright side of things. By A-Gas Americas acquiring PureChem the A-Gas customers will now have that much better customer experience, much faster turn around on refrigerant pick-ups, and refrigerant reclamation.
The other upside here is to the entrepreneur. The guy who started his own company a few years back and had some success but is now looking to move on. These two refrigerant companies give that guy hope. They can give that guy a reward his hard work. I can’t imagine the feeling of working and building on something for years, or even decades, and then be rewarded by the interest of a multi-national company. That’s got to you make feel good.