Our firm has been retained to seek a buyer, investor, or joint venture partner for CNG Source, Inc. (the “Company” or “CNG Source”), a leading provider of turn-key CNG station design, equipment production, and installation. CNG Source was formed in 2011 to provide an end-to-end solution for CNG dispensing stations, while cutting costs and providing substantial flexibility to fit customer’s needs.The Company is headquartered in Indianapolis, with a satellite office in Houston allowing for a broad geographic presence. Additionally, the wholly owned CNG fueling station in Indianapolis provides the Company with the ability to use it as an R&D facility for all new equipment they manufacture or concepts they are testing.
CNG Source manufactures in a 21,000 sq ft leased facility with the capabilities to create and assemble compressor packaging (including control panels and storage) from leading compressor units including Bauer, GE, BRC FuelMaker, and others. Additionally, the Company has a proprietary line of dispenser units operating with the Comdata card ready system and are a registered UL panel shop. The Company is also a certified weld shop meeting ANSI B31.3 standards. The public CNG dispensers they manufacture are NTEP Certified which meet the weights and measurements standards. With the capability to package CNG compressors from 7.5HP to 600HP, CNG Source is well positioned to continue serving this market segment with leading products and service.
In addition to designing and manufacturing CNG dispensing stations, CNG Source also has long term maintenance contracts with several companies (such as Constellation an Exelon Company) for whom they have developed stations – further diversifying the revenue stream during times of commodity volatility.
Despite recent volatility in the commodity markets, local governments continue to invest money in the CNG space in an effort to meet increasing environmental initiatives. There has also been substantial investment by major transportation companies such as FedEx and UPS in CNG, which are increasing their use of alternative fuel vehicles. Earlier in 2015, UPS announced they are putting over 1,400 CNG powered vehicles onto the roads.
CNG Source provides a true end-to-end solution from system design, building, and manufacturing to long term maintenance and warranty services. This is an excellent opportunity to invest in, or acquire, an established business in this growing space that has the capacity to continue to meet government and private investment demand.