Established in 1993 and headquartered in Bristol, A-Gas is a global blender, re-packager and distributor of specialist gases and chemicals to the refrigeration and insulation foam industries. It also provides associated environmental services, mainly the recovery and recycling of used gases, and has a strong market position in each of its business units.

The company employs over 120 people and is a leader in its principal territories of the UK, Australia and South Africa and also has a growing presence in Asia Pacific and North America, providing a global platform with growth potential in all markets. 

The LDC investment represents a significant stake in the business, with debt funding provided by HSBC, The Royal Bank of Scotland and the Acquisition Finance division of Lloyds TSB Corporate Markets.

Working closely with management, LDC will execute an expansion strategy to increase the group’s global footprint by expanding its business in Asia Pacific and the Americas, and supporting the potential acquisition of complementary businesses.

John Rutley, Executive Chairman of A-Gas, commented: “We hold a leading position in the specialty gases market, with environmental initiatives such as the Montreal and Kyoto Protocols continuing to drive the market for our products, services and expertise. 

“In LDC we have secured the financial and strategic backing of an investor which has a strong track record of supporting sustainable businesses, not only in the UK but also internationally. There will be opportunities for LDC to add significant value through its Hong Kong office and contacts as we continue to explore ways of increasing sales in Asia.”

The transaction was led by investment directors Ian Podmore and Peter Latham of LDC. Ian Podmore and Darryl Eales, CEO of LDC, will join A-Gas’ board.

Ian Podmore said: “We are backing an exceptional and experienced management team in a rapidly expanding business which has a highly defensible position in each of its core markets.

“A-Gas is well placed for future growth, which will be driven by the increasing worldwide demand for air-conditioning and food refrigeration, changes in the regulatory environment for CFC replacement gases, and its well invested asset base.”

LDC (Lloyds TSB Development Capital) is part of the Lloyds Banking Group and is authorised and regulated by the Financial Services Authority. LDC has, since 1981, completed over 400 investments, has ongoing interests in over 60 businesses across the UK. LDC back ambitious management teams from UK-based companies seeking between £2m and £100m of equity for management buy-outs, institutional buy-outs or development capital transactions. LDC has a UK regional network of 12 offices alongside an international operation based in Hong Kong.        

For more information visit www.ldc.co.uk.