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The management team at a Belgian company that distributes special gases has bought a 50% shareholding in the business. Mebrom Group was sold for an undisclosed sum to a team led by chief executive Patrick Goossens.

The buy-out team was backed by investors GIMV and KBC Private Equity, which have each taken a 25% stake in the business.

More than half of Mebrom’s revenues are generated by its Gasco division, which distributes refrigerated and industrial gases and related products across Europe. The Ghent-based company also distributes methyl bromide to the agricultural and disinfecting industries in more than 60 countries.

The business, which last year reported a £32.2 million (euro47 million) turnover, was sold by BV Capital Partners and certain members of the management team who bought the company in 2004.

Goossens’ team plans to work with GIMV and KBC to expand the business through selected acquisitions.

GIMV and KBC appointed a team at VGD to manage financial and tax due diligence reviews of Mebrom’s business while ERM was approached to carry out an environmental and health and safety review.

VGD, led by M&A partner Wouter Vandeberg and tax partner Edwin Vervoort, also had to structure the deal as tax efficiently as possible as part of its brief.

Vandeberg said his team’s main task was to evaluate the risks and opportunities surround this niche business based upon its historical performance and current trading trends.

“Critical in this work was to provide comfort on the drivers of revenue and profit and its relation to the development of financial performance,” he added. “The set up of a tailor made and transparent acquisition structure was one of the key success factors in concluding this deal.”

ERM’s work was managed by partner Kathleen Goossens, who was supported by auditors Dominique Ranson and Frank Konings. Marc Geens handled the evaluation of the potential of the methyl bromide market.

Goossens said the firm’s assessment had to identify and evaluate the environmental and health and safety non-compliance issues related to the operations of Mebrom’s site. It also evaluated current and past manufacturing activities and related practices at the sites in order to establish known or potential sources of material soil, groundwater or surface water contamination.

“In particular previous soil investigation documents were reviewed and evaluated; and provide a cost estimate for non-compliance issues, if identified, as well as site investigation and clean-up costs, if identified.

“Additionally, ERM was requested to evaluate the potential for methyl bromide through a review of available alternatives in the light of the Montreal protocol,” she added. “Methyl bromide is considered to be an ozone depleting substance. The substance had to be phased out in Europe by 2005 and has to be phased out globally in 2015. Methyl bromide is still used in exemptions where no valid alternatives have been identified.”

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