Actis, an emerging markets private equity firm, has sold its 95 per cent stake in Ceylon Oxygen, a Sri Lankan manufacturer of industrial and medical gases, to The Linde Group.
The Linde Group is a gases and engineering company with operations in more than 100 countries.
Actis’s commitment to Ceylon Oxygen began with an investment in September 2006, when it acquired the company from Yara International and, in so doing, executed the largest private equity investment and management buyout in Sri Lanka’s history.
Following its investment, Actis appointed Niran Pieris as chief executive, Sri Lankan professional Manju Haththotuwa as chairman, and international gas industry veteran David Fuller as a board member and consultant.
Actis has worked closely with the management team to grow the business over this period focusing on improved service levels, efficiency and international best practice. The company made investments to upgrade equipment and to establish a network of depots and filling stations in Kurunagala, Rathanpura and Galle to improve delivery times to customers and reduce transportation costs.
Asanka Rodrigo, Actis director on the board of Ceylon Oxygen, says: “We have worked hard with Niran and his team to build what was a solid and stable business in to a more dynamic, customer focused, results oriented company. The team performed admirably rising to the challenges of the pre-2009 period to deliver great results and are now also reaping the rewards of the higher growth, more optimistic Sri Lanka.”
Pieris adds: "We are very proud of our association with Actis – especially for their belief in our management team and their commitment to the long-term growth of Ceylon Oxygen. Today is the start of an exciting future for Ceylon Oxygen. As a member of The Linde Group, we will be able to leverage on Linde’s innovations built over 130 years, technological expertise and strong market position in South and East Asia to accelerate our expansion plans and serve an even wider set of customers.”
