A-Gas International Acquires RemTec

Aug. 15, 2012
The union will combine the companies' respective strengths in chemical recovery and distribution.

A-Gas International, based in Melbourne, Australia, one of the world’s largest independent suppliers of refrigerants, associated environmental services, and speciality gases and chemicals, has acquired RemTec International, Bowling Green, OH.

Rem Tec specializes in the controlled halocarbon management and sustainability industry. HVACR contractors know Rem Tec best for its refrigerant recovery, buy-back, and recycling services.

The transaction represents the fourth strategic acquisition completed by A-Gas so far in 2012, and forms part of a growth-through-acquisition strategy, which is being executed both in the U.K. and internationally. A-Gas is a worldwide distributor of specialty chemicals, including refrigerants, insulation agents, industrial gases, propellants, and solvents for the refrigeration, insulation, and fire protection.

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.

Rem Tec is a recipient of the Northwest Ohio Entrepreneur of the Year Award, and an Ohio Governor’s Export Award. Through expanding its geographic footprint to international locations such as Middle East, China, Australia and India, and integrating key technologies and equipment, sources say 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 organizations all over the world to remove, recycle, and remarket controlled halocarbons, including the U.S. and multiple other federal governments and numerous Fortune 500 companies serving the aviation, fire suppression, refrigeration, propellant, and environmental services end markets.

RemTec recycles used refrigerants, where its specialized equipment and expertise allow it to provide a full reclaim and product stewardship package to refrigerant users. Sources report the acquisition provides a strong strategic fit with A-Gas’ existing operations in the Environmental Services market, which is already well established in the U.K. and Europe, and provides the business with a solid foothold within the all-important North American market. John Rutley, executive chairman of A-Gas International, said the acquisition of RemTec is an example of A-Gas International’s 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, while also driving value across the enlarged group,” Rutley said. “We were impressed with the existing management of Rem Tec. We felt they had established an excellent position in the markets they were serving,” added Steven Galaton, president of A-Gas Americas, Inc., Doylestown, PA, in an interview with Contracting’s “Refrigerant 4-1-1” newsletter.

“We found a significant number of synergies between the two companies. Rem Tec has strength in the recovery and recycling of used refrigerants, and we believe the U.S. market is the next significant growth market for A-Gas in the refrigerants business,” Galaton said.

Richard Marcus, President/CEO of RemTec International, said he welcomed the resources that the A-Gas group and LDC bring to Rem Tec.

“The financial and technical strength of A-Gas will enable RemTec to grow faster than it could independently. My team and my customers know that I have built a business based on service, and I will be staying on as president/CEO to ensure that we maintain this tradition even as we expand our products and services,” Marcus said.

During an interview with “Refrigerant 4-1-1,” Marcus said all Rem Tec personnel would remain in place, and some new personnel would be added to the Bowling Green, OH-based team.