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TPG Rise Climate Acquires Majority Stake in A-Gas from KKR

In 2017, KKR made a significant move by acquiring A-Gas through their European Fund IV.

The TPG Capital logo is seen on an LED screen in the background while a silhouetted person uses a smartphone. Photo: Getty Images

A-Gas, a pioneer in the supply and lifecycle management of refrigerant gases for over three decades, gained a new chapter in its journey.

The recent announcement from KKR regarding the majority stake sale of A-Gas to TPG Rise Climate signals a strategic shift towards furthering environmental impact.

A-Gas has established itself as a global leader in addressing the critical issue of refrigerant gases, notorious for their harmful effects on the atmosphere.

By effectively managing the lifecycle of these gases, A-Gas has successfully prevented their release into the atmosphere at the end of their utility.

This proactive approach is crucial in mitigating the severe consequences of global warming, given the destructive nature of these gases.

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Beyond environmental benefits, A-Gas has seamlessly integrated itself into the circular economy model within its sector.

Remarkably, A-Gas’s efforts have translated into a tangible positive impact equivalent to the mitigation of 8 million metric tons of CO2 emissions annually.

To put this achievement into perspective, it is akin to the annual emissions from 1.6 million cars. This remarkable feat underscores the role of A-Gas as a sustainability stalwart.

KKR’s involvement has significantly bolstered A-Gas’s prominence since their majority stake acquisition.

The infusion of support and financial resources from KKR has propelled A-Gas’s expansion into new markets and the continued development of sustainable technologies.

This collaboration has yielded impressive results, with double-digit revenue and EBITDA growth becoming the norm since 2017.

In a recent development in mid-August 2023, KKR unveiled a strategic partnership with TPG Rise Climate.

This announcement marks a new phase in A-Gas’s journey towards sustainable impact.

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KKR’s decision to relinquish a majority stake to TPG Rise Climate, a dedicated climate-focused investing strategy within TPG’s global impact investing platform, reflects a shared commitment to combating climate change.

TPG Rise Climate, launched in early 2021, is on a mission to curate a portfolio of companies that offer quantifiable carbon reduction solutions.

Their investment strategy is underpinned by data-driven, evidence-based decision-making.

Mattia Caprioli, Co-Head of European Private Equity at KKR, underscored the value of TPG Rise Climate’s market expertise, particularly in the US carbon credit market.

This expertise is poised to further amplify the impact A-Gas can make under the new partnership.

In conclusion, the journey of A-Gas under KKR’s ownership has evolved into a remarkable sustainability success story.

From their pioneering efforts in refrigerant gas management to their instrumental role in the circular economy, A-Gas stands as a testament to the positive change that can be achieved through strategic acquisitions and partnerships.

With the strategic collaboration between KKR and TPG Rise Climate, A-Gas’s journey towards a greener future gains renewed momentum, reinforcing the company’s commitment to global environmental well-being.

To get in contact with feedback on this article please email us at publishing@krugmaninsights.com

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