Apr 2011 – GCP exits A-Gas International in £70M deal

GCP exits A-Gas International in £70M deal

Growth Capital Partners (GCP), the provider of flexible structured equity to UK SME’s has sold its 40% stake in A-Gas International (A-Gas) in a deal that values A-Gas at £70 million. A-Gas is a leading independent global supplier of Refrigerants and Environmental Services to the Refrigeration and Air Conditioning Industry. This is the third realisation from GCP’s Fund II, with more successful exits to come.

A-Gas’ highly rated management team, led by founder and Executive Chairman, John Rutley, is reinvesting alongside LDC.

Commenting Garrett Curran a partner at GCP said:

“A first rate management team combined with our backing and flexible funding approach, have provided the financial capacity and expertise for organic growth of this quality business. A-Gas is a multinational business with a market leading position in the UK, Australia and South Africa and a rapidly growing market share in the Americas and Asia. We are pleased to have played a part in A-Gas’ development and wish them every success in the future”

GCP backed A-Gas in February 2007 in a £32 million MBO. A-Gas holds a strong position in the regulated specialty gases market which is underpinned by legislation and regulation. The business has operations in the UK, South Africa, Australia, USA and Asia.

A-Gas’ John Rutley comments:

“GCP’s blended equity and debt structure really was tailored to suit our business and helped the business during its recent growth phase. Their supportive and knowledgeable approach ensured prompt decision making at board level, allowing the company to quickly take advantage of growth opportunities thereby increasing the underlying value of the company”

Environmental initiatives such as the Montreal and Kyoto Protocols are driving the market for A-Gas‘s products and technical services. The business is at the forefront of supplying industry with environmentally acceptable solutions for refrigeration and insulation needs, including a rapidly expanding refrigerant reclamation and recycling business.

Headquartered in the UK, A-Gas employs over 120 people worldwide.

GCP’s Fund II has a realised IRR of 30%, following three successful exits which have returned more than the total investments made by the Fund. There are six remaining investments in the portfolio and GCP expects to deliver further value to its investors as it realises these assets in due course. GCP has made over 20 investments including A-Gas and companies such as Tangerine, the UK confectionery business that makes Butterkist Popcorn.


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