Caxton-Iseman Capital, a New York-based private investment firm, has agreed to acquire Valley National Gases Incorporated for about $312 million.

Founded in 1958, Valley National is an independent U.S. distributor of industrial, medical and specialty gases delivered in packaged or cylinder form, related welding equipment and supplies, and non-pipeline propane. The company serves more than 225,000 industrial, commercial and residential customers through 75 branches in 14 Eastern and Midwestern states. Valley National had revenue of $220 million in the 12 months ended Sept. 30, 2006, and employs about 750 people.

Frederick J. Iseman, managing partner of Caxton-Iseman, said: ‘Valley National Gases is an outstanding growth platform in the gas distribution sector. The company supplies products to a varied customer base that demands a strong commitment to customer service and support. It has performed well throughout economic cycles and established a strong position in the consolidating industrial gas and propane sectors. We are investing because we believe Valley National is well positioned to expand in its existing markets and enter new geographies through strategic acquisitions and internal growth.’

This is Caxton-Iseman’s first venture in the industrial gas and welding supply business.

Caxton-Iseman Capital’s portfolio companies include Ply Gem Industries, Inc., a manufacturer of vinyl and aluminum building products; Buffets, Inc., the nation’s largest buffet restaurant chain; Electrograph Systems, Inc., a national distributor of display technology solutions; American Residential Services, LLC, a provider of HVAC and plumbing services; and Prodigy Health Group, Inc., a health care services company. Caxton-Iseman’s companies have combined revenues of $5 billion.

More Breaking News