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You are receiving this mail every week as we see you as a key partner and we look forward to continuing to enjoy our journey with you over the decades ahead.
Please find below this week’s newsletter covering the latest M&A, company performance, fundraisings and executive moves.
Deal Details: Clanwilliam Health, a provider of practice management and pharmacy software solutions and services, has acquired Cork-based software company KM Medical for an undisclosed sum.
While no financial details of the deal have been disclosed, Clanwilliam typically spends between €5m and €15m on acquisitions.
Cork-headquartered, KM Medical Software specialises in cloud-based EMR solutions for Surgeons, Physiotherapists and many other specialists, as well as clinical outcome software used in a range of specialities such as orthopaedics, gynaecology and neurology.
The company’s expertise in cloud-based technology will complement Clanwilliam Group’s diverse and trusted product range across the UK & Ireland and Asia-Pacific territories.
Clanwilliam has acquired more than 15 businesses in recent years across Ireland, Britain, Australia and New Zealand. It reported a €23.3m loss in 2018 as revenues rose to €31m from €26m in 2017, according to accounts filed for its Irish operation. The group employs over 1,200 people globally.
Advisers: None mentioned
Renatus Comment: Operational healthcare technology is becoming increasingly common and necessary. Solutions such as KM Medical’s can drive efficiencies, reducing both time and cost, which are much needed in state and private hospitals, particularly in Ireland. Their business model means that they become embedded in client systems and processes, resulting in high switching costs and barriers to competition.
None of this is news to Clanwilliam, however, who have acquired a number of companies in the space.
Source: Clanwilliam Group
Deal Details: Sysnet Global Solutions has secured a significant growth equity investment. The investment was led by first institutional investor FTV Capital with True Wind Capital co-investing.
Established in 1989, Sysnet Global Solutions provides payment card industry, cyber security and compliance solutions that help businesses to improve security and acquiring organisations to reduce risk. Headquartered in Dublin, Sysnet has clients in more than 60 countries worldwide.
FTV Capital is a growth equity investment firm that has raised more than $2.7b to invest in high-growth companies offering a range of innovative solutions in three sectors: enterprise technology and services, financial services, and payments and transaction processing.
True Wind Capital is a San Francisco-based private equity firm focused on investing in leading technology companies with a broad mandate including software, data analytics, tech-enabled services, internet, financial technology, and hardware.
Advisers: The Sysnet team was assisted in the transaction by DC Advisory, the Dublin office of the Maples Group (Colm Rafferty and Jordan O’Brien represented Sysnet, Patrick Quinlan represented the Sysnet management team), Jamieson Corporate Finance and Ernst & Young.
Renatus Comment: This is a good Irish success story in the BPO space and follows other deal including Eishtec and Abtran. Most recent financials are for the period ending March 2018 and show the company generated EBITDA of c. €3.2m off turnover of c. €22.9m. Sysnet is a family company started in 1989 by Tom Moynagh and now being led by his daughter and chief executive Gabriel Moynagh.
Source: Sysnet Global Solutions
Deal Details: Alucraft Systems has acquired certain assets of Façade and Glazing Solutions Limited, including its 3,000m2 manufacturing facility in Rotherham, UK for an undisclosed sum.
FGS entered into administration in January 2020. Since then the management of Alucraft Systems has worked with the former employees and administrator to secure a deal for the facility and its assets.
Alucraft, founded in 1975, is owned by Elaghmore, the UK-based private equity firm, which acquired the Company in 2018. Elaghmore has provided financial support for the acquisition.
Alucraft plans to reopen the FGS facility with an initial 19 employees. The ambition is to expand the workforce as Alucraft Group secures new work. Alucraft Group includes Alucraft – Dublin, William Cox and Alucraft Systems – UK. The Group is closely aligned with English Architectural Glazing (“EAG”). EAG was acquired by Elaghmore in 2019
Advisers: None mentioned.
Renatus Comment: This acquisition will allow Alucraft build on its strong reputation for delivering a high-quality service to its customers, some recent projects include: the new HQ for Amazon, LinkedIn EMEA and Lidl Ireland HQ.
This is a perfect example of Private Equity helping drive on the ambitious international growth strategy of a business. Elaghmore acquired Alucraft in 2018 and have now provided growth capital as part of this transaction to help expand the aluminium fabrication capacity. Alucraft plan further expansion this year and you can be sure that Elaghmore will be providing further growth capital.
Source: Alucraft Group
Deal Details: Irish-owned hotel chain iNua has been bought out by its management team. The financial consideration of the deal was not disclosed. Ownership has switched from Noel Creedon to iNua directors Sean O’Driscoll and Paul Fitzgerald.
Founded in 2012, iNua employs over 1200 staff in its chain of 8 hotels. Based in Cork, the collection comprises the Muckross Park Hotel in Killarney, the Kilkenny Hibernian Hotel, the Tullamore Court Hotel, the Hillgrove Hotel in Monaghan and Radisson Blu Hotels in Cork, Limerick, Athlone and Sligo.
iNua Hospitality is said to expect to report an Ebitda of €8.9m for 2019. This would represent an increase of 5% on a like-for-like basis. Revenues are expected to hit €56m, up 4% on 2018. Its average room rate rose by €2 to €101, while its like-for-like occupancy increased by one percentage point to 75%.
Advisers: None mentioned
Renatus Comment:
iNua’s position and standing in the Irish Hospitality landscape is noteworthy given that it only acquired its first Hotel in 2013. It’s success to date owes much to founder and now NED Noel Creedon’s vision. Those investors who backed his entrepreneurial instincts with iNua were rewarded and the market will be keen to see what his next venture will be. Paul Fitzgerald and Sean O’Driscoll both have strong track records and the new leadership team are well positioned to build on a great platform.
Source: Irish Times
Deal Details: Irish family-owned company Keelings have completed an acquisition of Las Brisas Farm, a Costa Rican farm.
Las Brisas is an award-winning producer of high-quality pineapples, it is also a part of Tesco’s Nurture Program, a program focused on the delivery of world class fruit.
Started in the 1930’s, Keelings is a third-generation family-owned company led by Caroline, David and William Keeling. Today, Keelings is Ireland’s largest horticulture company turning over in excess of €300m.
Advisers: Keelings were advised by Paddy Dillon and David Kealy in Grant Thornton Dublin as well as the local Grant Thornton office in Costa Rica.
Renatus Comment: Keelings started out originally as a producer supplying into local markets. As the business scaled, it pivoted into other produce categories, shipping sourcing and distributing fresh produce around the world and created a great brand. This acquisition looks to be a clever move to deploy capital and control their supply chain.
Source: Keelings Press Release
The £10bn (€11.8bn) merger between the two gambling groups Flutter, owner of Paddy Power, and Stars Group, which owns Sky Betting and Gaming is being investigated by the UK’s Competition and Markets Authority. The watchdog said it would investigate whether the deal would result in a “substantial lessening of competition” in the UK gambling market.
Brands controlled by Flutter and Stars make up about 40% of the UK’s online sports betting market. Analysts at Redburn estimated that the two companies control about 26% of the overall online gambling market in the UK – close to the 25% threshold over which the CMA takes an interest.
The deal is expected to close in the second or third quarter of this year depending on the CMA’s findings and, if successful, will create the largest online betting operator in the world by revenue.
Source: Irish Times
We in Renatus believe that more important than the deals are the people and we have teamed up with leaders in this field Korn Ferry to provide you with details of key recent executive and board level appointments.
BTSB appoints new CEO
The Irish Blood Transfusion Board has appointed Orla O’Brien at its new CEO. Ms O’Brien is presently CEO at LauraLynn, the Children’s Hospice. Prior to her tenure at LauraLynn, Ms O’Brien was CEO at the Children’s Hospital Group for 4 years until 2018. She is a trained Nurse and had a long career at Our Lady’s Hospital for Sick Children prior to moving to the Department of Health in 2013 as a Project Manager. Ms. O’Brien will assume her new role at the BTSB in April.
Creagh Concrete appoints new Managing Director
Belfast based Creagh Concrete has recently appointed former Big 4 senior executive Noel Culbert as its Managing Director. Mr Culbert joins from PwC where he spent almost 12 years in various roles before being appointed Associate Partner in 2011.
Eversheds appoints three new partners
Eversheds Sutherland has announced the promotion of Eoin MacAodha, Julie Galbraith and Peter O’Neill to partner in the firm’s Dublin office. Mr MacAodha, who has become partner in the firm’s litigation practice, has a particular focus on regulatory compliance and white-collar crime, as well as extensive experience in public administrative law, High Court appeals and judicial review. Ms Galbraith has become partner in the firm’s employment team, advising clients on all aspects of the employment relationship from recruitment to termination. Mr O’Neill, who has become partner in the firm’s commercial team, practises in all aspects of commercial and corporate law including M&A transactions, venture capital transactions, distribution agreements and outsourcing agreements.
New partner announced at Philip Lee
Dublin-based commercial law firm Philip Lee has announced the appointment of Marie Kinsella as a partner. Ms Kinsella has specialist expertise in the areas of financial services regulation, healthcare and pharmaceutical law, public and administrative law, criminal investigations, statutory and non-statutory inquiries and regulatory. Ms Kinsella previously worked in the enforcement division in the Central Bank of Ireland, where she recently worked on the high-profile tracker mortgage investigation.
EBITDA is an accounting term and is often the best indicator of profitability in non-capital-intensive businesses before financing and tax are considered. In capital-intensive businesses EBIT or EBITDA less average Capital Expenditure are often better measures. YoY is an acronym for the year-on-year movement in turnover, EBITDA, etc.
Based in Dublin with operations in Co. Louth, Great Northern Distillery Limited is the largest independent distillery in Ireland and has a capacity of 16 million litres of Whiskey spirit as well as it also operates a small-scale Gin still. In FY19, the company had a very successful year which saw revenue increase by 41.2% to c. €19.3m while EBITDA also jumped by 35.6% to c. €9.5m. The company employed an average of 31 employees during the year at a cost of c. €1.8m. There was a net cash decrease in FY19 of c. €275k after significant working capital movements which tied up c. €10.8m of cash, c. €3.7m increase in debtors, c. €6.0m increase in stocks, and c. €1.1m decrease in creditors. The company also disposed of c. €1.7m of fixed assets and spent c. €5.1m on Capex requirements, loan interest of c. €625k was paid and the company drew down c. €5.6m of debt. Cash on the balance sheet stood at c. €715k against a debt balance of c. €22.5m. Net assets were up 27.6% to c. €29.3m from c. €22.9m the previous year. The distillery is owned by the Teeling family, James Finn and David Hynes.
Founded in 1920, KSG today has over 1,100 employees, across 115 locations, serving 12 million meals annually. The company, which originally started out as a bakery, has evolved over time and today counts SoMa, Noah & Co, Pulse, Craft Lane Bar & Restaurant, Leopold Coffee House and Coffee Doc among its portfolio. Turnover, which was all earned in the Republic of Ireland, increased by c. 9.0% during FY19. EBITDA increased by 45.5% to c. €3.3m as operating costs were effectively flat over the year. EBITDA converted to a net cash increase of c. €1.7m after c. €2.4m was spent on fixed assets.
Mar-Train Heavy Haulage Ltd is a family run business based outside Lisburn in Co. Down. The company specialises in heavy haulage and the transport of wind farm components throughout Ireland, the UK and Europe. In its most recent financial year, the company experienced strong growth with revenue increasing by 25.9% to c. £13.1m while EBITDA was up 29.2% to c. £2.4m. The company employed an average of 64 employees at a cost of c. £3.0m during FY19. There was a net decrease in cash during the year after a working capital cash suck of c. £2.7m which was largely attributable to a c. £3.6m increase in debtors. Throughout the year the company had a Capex spend of c. £1.1m while dividends of c. £748k were paid out as well as a c. £354k payment of lease obligations leaving cash on the balance sheet at c. £3.7m. Net assets stood at c. £14.0m. The company is owned by Sonya Martin (50%) and Timothy Martin (50%).
Who: Private equity firms KKR and Palm Capital have agreed to fund the development of two Grade A logistics warehouses at Greenogue Business Park, Dublin by Jordanstown Properties.
What: The funding amount has not been disclosed however the development is expected to be worth around €85m once completed. Palm Capital and KKR were advised by Savills whilst JLL acted for Jordanstown Properties.
Why: The funds are required to build the circa 42,000 sq m development, which is situated on one of Ireland’s biggest logistics campuses at around 350 acres, is being undertaken speculatively and is due for completion next year.
Source: Irish Independent
Who: Internet Corp, a Dublin-headquartered cloud services group that will rebrand as Ekco in February, has secured funding.
What: €8.4m funding round was led by ACT Venture Capital, which has backed the company since its inception. Other existing investors tapped for cash include former AIB chairman Lochlann Quinn; Sencheer, the investment vehicle of the family of the late Superquinn founder Feargal Quinn; and Pageant Holdings, the investment vehicle of businessman Nick Furlong. The company will seek to raise €25m fresh capital in 2020.
Why: Company will use the funding to continue its strategy of mopping up smaller cloud operators. Since its inception in 2017, Internet Corp has completed 9 acquisitions.
Source: Irish Times
Who: Payescape, a Co Antrim payroll firm, has secured backing.
What: The company is investing £1m (€1.18m) and has received £144,000 (€170,000) from economic development agency Invest NI.
Why: The investment will be used for increasing its workforce by 20 new employees which will enable them to pursue opportunities in the UK.
Source: Belfast Telegraph
Who: Voxpro founders Dan and Linda Kiely invest in the Cork-based co-working hub Republic of Work.
What: The couple invested €250,000 in the 25,500sq ft campus founded by DC Calahane and Dave Ronanye in 2017. Among the other investments made by the Kielys in recent years include backing remote working platform Abadoo, legal services start-up Johnson Hana and fashion website Open for Vintage.
Why: The investment is to support the space and hopefully help the next generation of Cork entrepreneurs.
Source: Irish Times
Who: Mayo’s Ice Hotel, a hotel in Ballina owned by accountant Pearse Farrell.
What: The Ice Hotel has raised funds from the Irish Diaspora Loan Fund. Loans from the Diaspora Fund are reported to be interest free with investors qualifying for residency. There is a fee charged to the hotel though in relation to covering the cost of running the fund.
Why: No explicit use for the funds raised was stated.
Source: Sunday Times
As of 10am this Sunday morning, PaddyPowers’ betting markets suggested the following outcomes for the election.
Micheal Martin is 1/6 I.e almost certain to be next Taoiseach
There is no clear permutation of parties to be in government the most likely are:
FF/SF 4/1 14%
FF/Green/Independents 5/1 11%
FG/FF 6/1 9.5%
FF/Green/Independents/SDs 10/1 6%
FF/Green/Independents/Lab 11/1 5.5%
All other permutations are less than 5%
Another election this year is 5/2 (c 25%)
16.8m
The combined money invested into Irish start-ups in 2019 by business ‘angels’, totalling 66 Irish start-ups. This shows an average investment of €255,000 and a year-on-year increase of 18%. According to The Halo Business Angel Network (HBAN).
@IndoBusiness
c. 23,000
3.5%
The year-on-year drop in the new car sales in the Republic for January 2020, amounting to 31,251 new cars registered, according to SIMI. @irishexaminer
4.8%
The seasonally adjusted unemployment rate for January 2020 amounting to 120,200 unemployed persons, down from 5.1% in January 2019, according to @CSOIreland
10%
The year-on-year increase in the State’s tax take for January 2020, the biggest month of the year for the sales tax, amounting to €5.9bn total tax collected, according to Department of Finance @IrishTimesBiz
85.5
The consumer sentiment index for January 2020, highest in the last six months however still below 98.8 in January 2019, according to KBC Bank Ireland. @RTEbusiness
11%
The year-on-year drop in the new car sales in Northern Ireland for January 2020 amounting to 5030 news cars sold, the lowest since the first figures released in 1996, according to the Society of Motor Manufacturers and Traders (SMMT).
@BelTel
0.4% & 5.7%
The year-on-year increase and decrease in the Irish industrial production and turnover, respectively, for December 2019, according to @CSOIreland
4%
The year-on-year drop in the new homes registered to be built in Northern Ireland and the Isle of Man for 2019 amounting to 4655 new homes, according to NHBC. @BelTel
1.6m
The number of passengers travelling through Belfast harbour for 2019, a record level of cruise and ferry passengers, according to Belfast Harbour.
@BelTel
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