In 2011 LDC made a significant investment in A-Gas in a deal worth £70million, the deal enabled A-Gas to execute a rapid expansion strategy in the UK and internationally.
In 2017 LDC exited its investment in A-Gas to global investment firm, KKR. The transaction value is undisclosed.
LDC's original investment was followed by £30million of additional acquisition capital to assist the business in completing six acquisitions designed to expand its geographic footprint and service capabilities. Today, A-Gas operates from 16 sites across Europe, Australia, South Africa and North America.
It has also expanded its service capabilities from distribution to full recovery and reclamation of a wide range of environmentally sensitive gases and chemicals used in cooling, refrigeration and fire protection, providing end-to-end management for its global customer base.
Between 2011 and 2016, the business grew revenues 79% and profits (EBITDA) 103%. LDC’s sale of A-Gas to KKR saw LDC achieve a 3.3x money multiple on its original investment and an IRR of 24%.
In December 2017, LDC reinvested £23million in A-Gas to support the company’s ongoing international buy and build strategy.
LDC's financial, strategic and operational support over the last six years has been a key ingredient in our success, helping to transform the group and creating a platform for continued growth.Andrew Ambrose, Group CEO, A-Gas