Bristol-based A-Gas International (or “the Group”), one of the world’s largest independent suppliers of refrigerants, associated environmental services, and speciality gases and chemicals, has completed the acquisition of US based RemTec International (“RemTec”), a specialist in the controlled halocarbon management and sustainability industry. The terms of the transaction were not disclosed.
The deal was transacted with support from leading private equity provider LDC, who invested in the Group in April 2011. The transaction represents the fourth strategic acquisition completed by A-Gas so far in 2012, and forms part of the Group’s acquisitive growth strategy which is being executed both in the UK and internationally.
Founded in 1986, RemTec has provided products and services involved in managing Ozone Depleting Substances (ODS) and substances high in Global Warming Potential (GWP) on a worldwide basis.
The Company’s patented and proprietary equipment is used to recover and reclaim Halons and their replacement agents used in the fire protection industry, and also CFCs, HCFCs, and HFCs used in refrigerant and HVAC applications. Through expanding its geographic footprint to international locations such as Middle East, China, Australia and India, and integrating key technologies and equipment, RemTec possesses one of the most comprehensive and technically advanced international operations in the controlled halocarbons industry, enabling it to extract maximum value from ODS and GWP substances while safeguarding the environment.
RemTec’s capabilities represent a complete “end-to-end” solution for clients’ controlled halocarbon needs, including identification of unknown substances that may damage the environment, on-site removal and packaging and handling in accordance with all regulations, cylinder refurbishing and recertification, fractional distillation, and establishing halocarbon banks and strategic reserves. RemTec also offers safe and reliable halocarbon destruction options for all ODS and GWP material, and is one of the largest generators of carbon offset credits issued by the California Climate Action Reserve.
RemTec contracts with organisations all over the world to remove, recycle, and remarket controlled halocarbons, including the US and multiple other federal governments and numerous Fortune 500 companies serving the aviation, fire suppression, refrigeration, propellant, and environmental services end markets.
The business also recycles used refrigerants, where its specialised equipment and expertise allows it to provide a full reclaim and product stewardship package to refrigerant users in this environmentally sensitive sector.
The acquisition provides a strong strategic fit with A-Gas’ existing operations in the Environmental Services market which is already well established in the UK and Europe, and provides the business with a solid foothold within the all-important North American market.LDC's investment provides not only the capital to expand, but also additional strategic input and access to its international network, which will lead us into the next stage of our development.
Glenn Cooper
CEO of ATG Access
The acquisition of RemTec follows on from the successful acquisitions of Australian based Technochem in March 2012 and SA Rural in May 2012, and UK based A-Zone Technologies in April 2012.
Commenting on the acquisition, John Rutley, Executive Chairman of A-Gas International said: “The acquisition of RemTec is another great example of our ambition to grow the business on a global scale. RemTec brings a market leadership position in Halons and a strong platform for growth in refrigerants; we believe that there is real scope to build further upon RemTec’s success to date in North America, whilst also driving value across the enlarged group.”
Ian Podmore, Investment Director of LDC said: “2012 has been an exceptionally busy year to date for A-Gas. RemTec is the fourth strategic acquisition completed by the business this year and not only strengthens their existing position in the global refrigerant market but also gives the business real scale within the USA.
“The transaction brings many strategic benefits to A-Gas and is part of an agreed strategy to rapidly expand and build the business both through organic investment and bolt-on acquisitions. We will continue to work closely with the team to drive their ambitious growth plans going forward.”
Yann Souillard, Managing Director of LDC South Region added: “Since our initial investment in A-Gas last year, LDC’s South team has worked in close conjunction with the management team to support their ambitious ‘buy and build’ growth strategy. As part of our investment commitment, LDC works closely with our investment portfolio to provide expertise and follow on funding when the right target companies become available.”
Issued on behalf of LDC by Citypress.
Press information: Katie Dale, Citypress: T. 0121 230 1783; E. katie.dale@citypress.co.uk