Gas supplier acquires rival as it looks to explore markets

A YORKSHIRE gas supplier is aiming for expansion following the acquisition of an industrial gas distributor.

Innergy LPG is also planning to launch two operations in South Yorkshire and the Midlands as it targets to grow its customer base, which presently stands at more than 1,200 commercial clients.

The Leeds-based company, which was established in 2006 and is forecasting turnover of £1.2m this year, has acquired the assets, liabilities and goodwill of the gas division of I C Greens, based in Knaresborough, for an undisclosed sum.

I C Greens is one of the oldest industrial gas distributors in the UK, having been established in the early 1980’s, and was managed by the second and third generation of the Green family, Jeremy and Chris, until it was bought.

Innergy LPG, which employs eight staff but is looking to increase employees, is a supplier of liquefied petroleum gas (LPG), industrial gases, bulk LPG and associated equipment.

Gez Walsh, commercial director of innergy LPG, said the company was aiming to concentrate more on supplying LPG via tankers rather than cylinders, which it has previously focused on.

Mr Walsh said: “We decided to test the business model on the cylinder side of the business initially and now that we’ve been successful we’re about to go into the bulk side of LPG.”

Mr Walsh said of the acquisition: “I C Greens are a fantastic business with an amazing reputation for service and price. Many of their customers have been trading with them for over twenty years and we are aware of the very high standards we shall have to maintain.

“We were looking to expand in to North Yorkshire and this acquisition offered strong core business which we can grow and develop.”

Chris Green said: “We are rationalising the business and concentrating on our farming interests. We were very particular in choosing whom we entrusted the business to. We had a great deal of interest from a number of major gas suppliers, but we are convinced that innergy LPG share the same values as us and we are confident they will continue to provide an excellent service going forward.”

Innergy LPG, which was a winner at last year’s NatWest Start-Up Awards, has previously acquired the Leeds Calor Gas Centre in Leeds and has been appointed as main agent for Air Liquide Industrial Gases, a manufacturer and supplier of industrial and medical gases.

Innergy LPG’s customers include British Airways, Morrison’s, Seabrook Crisps, Britvic, Arla and Sam Smiths Brewery.

Mr Walsh said he was confident a ruling by the Competition Commission, which had found that suppliers Calor Gas and Flogas were dominating the bulk market and leading to anti-competitive trading, would open opportunities up to companies such as innergy LPG.

Mr Walsh added: “We are finding that the current harsh economic climate is actually bringing some advantages to our company. Whilst we can generally offer business customers’ savings of 25% and more, this often only represent thousands of pounds.

“To many big businesses this had previously being deemed unworthy of consideration. Suddenly, cost cutting is on the agenda again. Businesses we having been chasing for over two years are now taking our calls, even taking the initiative.”