A-Gas has announced that its owners, including majority owner KKR, have entered into a definitive agreement to sell a majority stake in the company.
The stake has gone to TPG Rise Climate, the dedicated climate investing strategy of TPG’s global impact investing platform, TPG Rise.
KKR will remain a significant minority shareholder in the business, continuing to work in collaboration with TPG Rise Climate and the A-Gas Leadership Team.
The transaction is expected to be completed by the end of 2023, subject to customary closing conditions. Terms of the transaction were not disclosed.
A-Gas Group CEO, Jack Govers, said the backing of TPG Rise Climate allows the company to scale its Lifecycle Refrigerant Management operations even further.
“We have a long history of being at the forefront of refrigerant gas recovery and reclamation, effectively lowering potential emissions to the atmosphere, and this investment from TPG is validation of our growth strategy and the quality of our products and services,” he said.
“We look forward to building on our success by executing a number of organic and inorganic growth initiatives.
“We are also grateful for the value that KKR has delivered to our business. KKR’s support, funding, and global platform have enabled us to significantly accelerate our growth into new markets and geographies, while also developing new sustainability-driven capabilities, and building our market leadership.”
For over 30 years, through its first-class recovery and reclamation processes, A-Gas has been at the forefront of capturing refrigerant gas for future re-use or safe destruction, creating a closed-loop system that prevents its harmful release to the atmosphere.
The company’s proprietary gas separation and recovery technology effectively abated approximately 8 million metric tonnes of CO2e in 2022, the equivalent to removing over 1.6 million cars from the roads for a year.
The company has also continued to significantly expand its global presence during KKR’s investment period, entering new markets across Europe, such as Germany, the Netherlands, and Italy, while substantially scaling the company’s operations in the US, entering Canada with the construction of a new refrigerant recovery and reclamation facility in Ontario, as well as expanding in Asia through the acquisition of a Japanese refrigerant reclamation and destruction company.
Since KKR’s acquisition, which was made through KKR European Fund IV in 2017, A-Gas has grown revenue by 14 per cent and EBITDA by 18 per cent on average annually.