Bristol-based speciality gases and chemicals firm A-Gas has made its fifth acquisition this year with the takeover of leading US refrigeration supplier and distributor Coolgas for an undisclosed sum.
Houston, Texas-based Coolgas, which was established in 1994, is one of the leading independent distributors of refrigerants in the US with around 3,000 customers and an established network of distribution operations across the country.
The deal considerably strengthens A-Gas’ existing US-based operations and better positions it as a larger business in the world’s largest refrigerant market. It also complements A-Gas’s July acquisition of Ohio-based refrigerant reclaimer and halocarbon management specialist RemTec International.
The deal was transacted with support from the Bristol office of private equity provider LDC, which invested in A-Gas in April 2011, and A-Gas’ existing banking syndicate of Lloyds Bank Wholesale Banking & Markets Acquisition Finance, HSBC and RBS.
The deal was led from HSBC’s side by Paul Crocker, head of leveraged finance at HSBC’s West and Wales corporate centre.
Following the Coolgas acquisition, A-Gas now employs 237 people and has an annual turnover of around £130m.
Chief executive John Rutley said: “Coolgas’ management team, led by Jesse Combs, has built a great business in the US refrigerant sector and we are delighted to add it to our rapidly expanding presence in this important market. The fit with our recently-acquired business, RemTec, is perfect and allows us to offer a full range of products and services to our customers in the world’s largest refrigerant market.”
LDC investment director Ian Podmore added: “Coolgas brings considerable strategic firepower to A-Gas’s US operations, particularly following the group’s acquisition of Remtec earlier this year. Its strong brand and complementary footprint will further accelerate A-Gas’s refrigerants sales growth in the all-important US market, at a time when regulations are tightening and the industry is beginning to migrate towards a more service led model; a feature which has been instrumental in the businesses global success to date.
“Having now considerably enhanced their US operations to be in-line with well-established business units in the UK and Australia, A-Gas has cemented its position as a truly global entity in its sector, with major profit centres in the UK, Europe, Australia, South Africa and the USA.”
LDC South Region managing director Yann Souillard said: “Since our investment in A-Gas in 2011, LDC’s South team has supported the business in the successful completion of five strategic acquisitions.
“One of our main investment objectives was to work in close conjunction with the management team to help roll out a ‘buy-and-build’ growth strategy and we have successfully delivered on this; adding sufficient scale to the business to ensure that it is now well positioned as a leading operator in the global refrigerant market.”
