LDC has backed the acquisition of SA Rural Agencies by portfolio company A-Gas International, its second ‘strategic’ purchase in the last month.
Bristol-based A-Gas International provides refrigerant gases, environmental services, speciality gases and chemical providers. SA Rural is based in Australia and is part of A-Gas’s plans to grow in both the UK and abroad.
Following the deal, SA Rural’s workforce has swelled to 158 and now has a presence in the UK, Australia, South Africa, the Asia Pacific and North America.
Ian Podmore, investment director at LDC, comments, ‘Since making a significant investment in A-Gas last year, we are delighted to continue our support of the A-Gas management team through the completion of two high quality acquisitions within as many months.
‘We believe that there is real scope to build the business, both overseas and here in the UK, and we will continue to work closely with the team to identify further acquisition opportunities in order to accelerate their ambitious growth strategy.’
In April 2011 LDC acquired a stake in A-Gas for £70 million in a tertiary buyout from Growth Capital Partners (GCP). The deal represented the third exit from GCP’s Fund II. The vendor also considered a trade sale as an exit route but decided to sell the company to private equity.
John Rutley, executive chairman of A-Gas, adds, ‘The deal brings many strategic and operational benefits, and represents an exciting growth opportunity for A-Gas.’
