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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: German-based healthcare investor IMMAC Group has acquired St Gabriels Nursing Home in Raheny, Dublin, and Beechpark Nursing Home in Kildare.
The financial consideration was not disclosed.
IMMAC is one of Europe’s leading investors in the healthcare sector, with €1.65bn under investment, in 154 nursing homes and 12,500 beds accross Germany, Austria, and Ireland.
The addition of St. Gabriel’s and Beechpark will increase IMMAC‘s Irish nursing home portfolio to 312 residential beds accross five facilities, all of which are based in Dublin and Kildare.
Advisers: McCann Fitzgerald and JPA Brenson Lawlor advised IMMAC on both transactions.
Renatus Comment: IMMAC first entered the Irish nursing home market in 2017 when they acquired Beechfield Care Group. Back then there was a pressing demand for Nursing home beds and now with Ireland showing an aging population, the market size is expected to continue to grow. Although one setback could be that tightened regulations in this space due to Covid-19 might cause a shift in customer preferences as they opt for stay-at-home options.
Source: IMMAC Group Press Release
Deal Details: Cordovan Capital Partners, led by its founder Mike Irvine, is exiting portfolio company TruCorp. The TruCorp management team of Michael Calo and Ryan Colhoun will acquire the shareholding for a reported return of 10.4x capital invested.
Established in 2016 and based in Belfast, Cordovan Capital Partners is a venture capital and private equity investment syndicate based in Northern Ireland. It focuses on MBO/MBI transactions, growth capital and early-stage investment.
NI-based TruCorp designs, manufactures, distributes & sells the most durable & realistic medical training simulators in the world: manikins, task trainers, apps & more.
Advisers: KPMG CF in Belfast (Russell Smyth and Chris Donnelly) and Tughans (John McGuckian and Paul O’Brien) advised the shareholders. Mills Selig (Chris Guy) advised management.
Renatus Comment: Cordovan Capital is having an exciting year so far, despite the Covid challenges. Its portfolio company reefLIVE Aquarium has been granted planning permission for its new Belfast Aquarium, CIGA Healthcare Ltd was announced as part of the UK-Rapid Test Consortium rolling out UK manufactured Covid-19 rapid antibody tests, and Decorum Vending LIimited
Source: Cordovan Capital Partners
Deal Details: Laidir Investments Ltd enter the Irish insurance intermediary market with the acquisition of a majority shareholding in Patrona Underwriting Limited. The deal value has not been disclosed.
Cork-based Laidir, established in March 2020, is backed by committed capital from a consortium of private equity and high net worth investors. It is headed by a group of Irish and UK insurance professionals.
Patrona, based in Wexford, specialises in the underwriting and distribution of Personal and Commercial Lines General Insurance products.
Following the deal Patrona’s existing management team will remain in place, headed by CEO Tony Wright.
Advisers: Coombes Corporate Finance Ltd provided the due diligence support.
Renatus Comment: The insurance industry has experienced a significant amount of M&A activity in the recent past as trade players and private investors have executed on consolidation plays in the space. The Sunday Times reports that International private equity buyers have spent an estimated €500m buying insurance brokers throughout Ireland in recent years.
Tony Wright was also the CEO/Owner Wright Group Brokers Ltd, which was acquired by Goldman Sachs-backed Aston Lark in December of 2019.
Source: LinkedIn
Deal Details: Statkraft, Norway’s largest energy producer, has acquired rights to five solar farm projects in Cork, Laois, Meath and Tipperary. The deal is rumoured to be worth between €10m and €12m.
The Norwegian company is planning to invest €150m in the sites which already have a full planning permission. The solar energy farms will generate a combined capacity of 275MW, when completed.
Statkraft recently completed a €30m wind farm at Kilathmoy on the Kerry-Limerick border with 23MW capability.
Advisers: None mentioned
Renatus Comment: This investment comes on the back of the recently launched Renewable Electricity Support Scheme 1 (RESS-1). RESS 1 is the first Renewable Electricity Support Scheme by the Government of Ireland and is a key component of the Government’s Climate Action Plan. The scheme aims to provide incentives toward developing renewable energy projects in Ireland.
Source: Independent
Deal Details: Dublin-based global compliance and online learning firm Interactive Services has been acquired by LRN Corporation for an undisclosed sum.
LRN, founded in 1994, is a US-based ethics and compliance education and technology company. LRN is owned by US private equity firm Leeds Equity Partners. Leeds is backed by the Ireland Strategic Investment Fund (ISIF) who reportedly committed $100m to Leeds Equity Partner Fund VI.
Interactive Services was founded in 1993. It is now an award-winning developer of corporate eLearning solutions.
The combined organization will help more companies build effective compliance programs and create ethically aware and inspired workforces.
Advisers: ByrneWallace team led by Neil Keenan and Anthony Smyth acted for Interactive Services.
Adrian Wall and Adam Griffiths of Regan Wall acted for some of the shareholders.
Latham and Watkins out of NY leading with Arthur Cox providing Irish law input on the sell side.
Renatus Comment: The E-learning industry is widely cited as being one of the winners from Covid-19 due to the closure of physical classrooms. UNESCO have estimated that roughly 1.38 billion learners have been impacted by these closures. These closures have forced the adoption of remote and digital learning solutions. While its uncertain how much of this forced adoption will stick in a post-Covid environment, its clear that the traditional learning model has been disrupted.
Source: LRN Press Relase
Deal Details: BoyleSports, Ireland’s largest independent betting chain, has acquired six of the seven shops from the HughesBet chain in Northern Ireland for an undisclosed sum.
The recent acquisitions are part of BoyleSports’ UK growth drive. The company now has over 60 shops across the UK. Earlier this year, it took over William Hill’s chain of 33 shops in NI and 2 in the Isle of Man.
Advisers: None mentioned
Renatus Comment: Consolidation in retail bookmaking has been rife. Family firms Cashmans, Eastwoods, Bamburys, Keenans, Harneys, Hacketts, McGranahans, Bruce, Mulhollands and now Hughes and many others have exited or partially exited to Boylesports, Paddy Power or Ladbrokes. Boylesports also bolted on the old William Hill Irish estate and the legacy of the Celtic Bookmakers estate. It is veering towards a vibrant duo of Boyles and Paddy Power with Ladbrokes a distant third in Irish retail betting. This follows many other mature industries with two at the top fighting it out and leaving the rest behind think McDonalds/BurgerKing, Airbus/Boeing, Coca-Cola Pepsi, UPS/FedEx etc
Source: BoyleSports
Deal Details: Irish Life has acquired Clearview Investment & Pensions for an undisclosed sum.
Clearview is a Limerick-based wealth management company led by Joan Garahy, a non-executive director in Kerry Group. The business was set up in 2011 and provides financial planning services that deals with investments, pensions, life & illness protection and savings for individuals, businesses and charities.
Advisers: Neil O’Gorman of HOMS advised the Sellers.
Renatus Comment: Irish Life has made a number of investments in the pensions and independent wealth management space in the last few years. Since 2018, it has acquired Invesco, City Life, Acumen & Trust, Conexim and APT Workplace Pensions. It was also a contender for Goodbody Stockbrokers when it was on the market.
CRO filings show the company is 50:50 owned by Joan Garahy and Patrick G. O’Connor and that the company generated an operating profit of c. €80k off turnover of c. €418k for the period ending October 2019.
Source: Sunday Times
Deal Details: Benchwarmers.ie, a sports website owned by the Irish Times group is to be sold to Rocket Sports. The consideration for the deal was not disclosed.
Benchwarmers reportedly gets over two million monthly page views and has over two million followers on Facebook.
Rocket Sports is a British sports marketing firm that operates a number of sports news and social media platforms
Advisers: None mentioned
Renatus Comment: Benchwarmers originated as a student project at Cork Institute of Technology and after building a significant following was acquired by Landmark Media Investments back in July of 2015. Benchwarmers became part of the Irish Times Group when it acquired Landmark Media Investments in 2018.
Source: Sunday Business Post
Independent News & Media owner Mediahuis is reported to be in early stage talks to acquire Dutch newspaper group NDC Mediagroep.
NDC is the largest independent media company in the north of the Netherlands. It employs 550 people and had a turnover of €112m last year.
Belgium-based Mediahuis, which expanded into Ireland by buying INM last year, already has presence in the Netherlands, where it publishes a number of titles.
Source: Independent
Irish-Swiss baked goods group Aryzta is reportedly in advanced takeover talks with US activist hedge fund group Elliot Management.
Elliott Management Corporation, founded in 1977, is one of the oldest fund managers of its kind under continuous management.
As of July 1, 2020, Elliott manages approximately $41bn in assets. The firm employs 466 people, in its New York headquarters and affiliated offices elsewhere in the United States, London, Hong Kong, and Tokyo.
Aryzta has recently been heavily tipped as a takeover target. The company reportedly hired Rothschild & Co in April for a strategic review that effectively put the business on the market.
Source: Irish Times
Irish-based motorway services station operator Applegreen has announced that it is part of Empire State Thruway Partners (the “Consortium”) which has signed a conditional 33-year lease. The lease will see the Consortium design construction, financing, operation and maintenance of the 27 motorway service areas on the New York State Thruway.
The award is subject to successful completion of a financial plan by the Consortium members, securing financing for the plan, as well as a number of subsequent approvals.
Source: Applegreen press release
Initially reported in March, Easons acquisition of Dubray Books Limited has now been cleared by the Competition and Consumer Protection Commission.
Easons, founded in 1866, is Ireland’s oldest and largest book retailer with over 60 outlets nationwide.
Dubray Books, founded in Bray in 1973 by Helen Clear, comprises 8 stores across the greater Dublin area and Galway.
Following this acquisition, Dubray will retain as a separate brand with its retail outlets in their current format.
Source: CCPC
O’Brien and O’Flynn construction company has made legal history by becoming the first Irish firm that had been put into Nama to come out of both receivership and liquidation processes.
O’Brien & O’Flynn UC (and two subs), has successfully obtained orders from the High Court to effectively discharge the official liquidators and statutory receivers.
Homebuilder O’Brien & O’Flynn, founded in 1976, now has ambitious plans for more projects across the county.
The Rescue Team: The rescue scheme was designed and led by Patricia O’Brien with Gavin Hinchy and Brian Moral of BHK Solicitors LLP.
Source: Irish Examiner
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.
Established in 2003, Tempside operates retail shops under the “Polonez” brand. At the time it was one of the first shops in Ireland providing Polish people with Polish foods. Around 40,000 people visit their c.30 shops every week.
In FY19, Tempside Limited saw revenue increase by a strong 15.2% to c. €34.5m while EBITDA increased by an impressive by 50.4% to c. €2.5m. Gross margins increased by c.1.8% due to a shift in the sales mix to higher margin products.
Net cash Increased by c.€86k to leave and ending balance of c.€433k. The largest drain on cash was the c.€2.47m spent on Fixtures Fittings & Equipment and a payment to acquire investment property.
The company hired an extra 74 people in FY19 bringing the total headcount to 251 employees at a total cost of c.€5.6m. Adrian Rezmerita owns 100% of Tempside Limited.
Established in 1967, Walter Watson Limited, based in Co. Down, has grown to become an industry leader in the disciplines of structural, agricultural and reinforcement steel fabrication.
In FY19, Walter Watson saw revenue decrease by 2.8% to c. £54.2m while EBITDA increased by 9.2% to c. £4.3m. Gross margins were up slightly due to a reduction in the cost of sales. The directors mention planned procurement and forward buying of raw material as having a significant positive influence.
Net cash decreased by c. £392k to leave an ending balance of c. £5.5m. The most significant drain on cash was the £2.6m negative Working Capital movement and the c.£950k spent on Motor vehicles and Plant & Machinery.
The company had 238 employees in FY19 at a total cost of c. £8.28m. The business is owned by the Watson family.
Established in Sandyford, Ethos Engineering provides mechanical and electrical consultancy services to the residential, commercial, retail, data centre, sports, leisure, micro-electronic, healthcare, educational, municipal, high tech and pharmaceutical sectors.
In FY19, Ethos Engineering saw revenue increase by 27.5% to c. €11.8m while EBITDA also increased by 24.5% to c. €2.6m. Gross margins were slightly down from 35% in FY18. Of that revenue figure, c.63% came from the Republic of Ireland and c.21% came from France.
Net cash increased by c. €419k to leave and ending balance of c. €2.1m. The biggest drain on cash was the c.€1.38m worth of dividends paid to shareholders.
The company had 80 employees in FY19 at a total cost of c. €5.4m. Gregory Hayden and Alisa Hayden together own 100% of Ethos Premier Holdings which is listed as the ultimate owner of Ethos Engineering Limited.
Who: Solgari, a Microsoft Premium & Inner Circle Business Applications ISV Partner, has completed a funding round.
What: €4m investment is backed by a number of private investors, Enterprise Ireland & GAN Ventures in US, UK and Ireland.
Solgari was advised by Q Advisors, Primary Access & Research in the UK, and Kagi Consulting, Pat Landy Corporate Finance and Grant & Co in Ireland.
Why: The investment will be used to accelerate global expansion in response to a spike in global demand as companies shift the delivery of customer care to cloud solutions.
Source: Solgari
Who: Gray’s Clip, run by Davy and Julie Gray, has secured investment.
What: £250,000 (c. €229,000) comes from nine investors through the Halo Business Angel Network (HBAN) and £100,000 (€91,656) from Co-Fund NI, part of Invest NI’s Access to Finance portfolio.
Why: The investment will be used to get the product ViperClip ready for launch next year.
Source: Belfast Telegraph
Who: Mortgage and insurance application company onlineapplication.ie, founded by mortgage expert Karl Deeter, has raised funding.
What: €1m is raised through several Irish entrepreneurs including Patrick Joy and Harry Largey and Enterprise Ireland.
Eoghan Doyle and Hugo Grattirola of Philip Lee provided legal advice for the investor group. Onlineapplication.ie was advised by Maples (legals) and Hogan and Associates (financials).
Why: The purpose of the funding was not disclosed however it is believed to be used for further development.
Source: Irish Times
Who: Irish e-scooter start-up Zipp Mobility, founded in 2019 by Charlie Gleeson, secures further investment.
What: €500,000 comes from investors including Brian O’Driscoll and a New York-based investor bringing the total funding to date to more than €1m.
Why: The investment comes after it received the all clear from the UK Department of Transport for use in its trials of e-scooter sharing schemes. This funding will be used for their UK launch.
Source: Silicon Republic
Who: Dublin start-up FoodMarble, which developed bespoke digestive breath analyser, has raised funding.
What: €1.2m funding round was led by Halo Business Angel Network. Other Investors include Enterprise Ireland, SOSV and Delta Partners
Why: The investment will be used to support the company’s overseas expansion into the US and Canada and to strengthen its R&D capability.
Source: Irish Times
Who: Hour One, an Israeli start-up that has developed a way to create synthetic characters based on real people. These characters are then used in articifial intelligence applications.
What: HourOne has raised $5m from Amaranthine Ventures, a Venture Capital firm backed by Paddy Cosgrave.
Why: There was no specific uses for the funds mentioned
Source: Sunday Times
Who: Eppione, a start-up that helps businesses automate their Covid-19 compliance requirements along with providing a wide range of software for HR management.
What: The company has raised a reported €1.25m in funding from backers including Ciaran Mulligan of Blue Insurance as well as Eppione founders David Kindlon, Neil Fallon and Ernest Legrand.
Why: No specific reason stated.
Source: Sunday Times
Who: Kinzen, a fake news detection platform built by Mark Little and Áine Kerr.
What: Kinzen is closing a €1.65m fundraising round that reportedly values the company in excess of €15m. Backers include Business Venture Partners, FST Growth, DK Investments, tech investor Ray Nolan and Enterprise Ireland.
Why: Funds raised will likely be used to continue developing the technology platform to tackle misinformation, an increasing problem for big tech companies such as Google, Facebook and Twitter.
Source: Sunday Business Post
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.
We were reading through the annual ifac Food and AgriBusiness Report published during the week.
The resilience of the Food and Agri sector during Covid has been amazing heretofore. Only one in ten companies surveyed let any staff go permanently over the past year while 9 out of 10 employers expect to maintain or grow staff numbers over the coming year. The Temporary Wage Subsidy Scheme was critically important though with 39% of the businesses using it since March.
This resilience will be tested over the coming period with Brexit now looming very large indeed. The sector is massively exposed and as Minister Coveney said at the ASA conference on Friday, “A very basic, thin agreement that avoids tariffs and quotas is the most we can hope for this year”. Brexit has the potential to be much more damaging to the Food and Agri sector than Covid-19 and the resilience the sector has shown will be tested with only 48% of stakeholders who responded believe they are ready for Brexit.
A full link to the report can be found here
10.5%
The year-on-year decrease in the monthly services index in Ireland for July 2020 with the most notable changes in Accommodation and Food Service Activities (-51.8%) and Information and Communication (+2.3%), according to @CSOIreland
15.4%
The unemployment rate in the Republic for August 2020, down by 2.2% month-on-month and down from a pandemic peak of 28.3% in April, according to @CSOIreland
1.0%
The year-on-year decline in the consumer price index in Ireland for August 2020 with the most notable changes in Communications (-8.4%) and Education (+4.1%), according to @CSOIreland
65.1%
The year-on-year decrease in the commercial traffic at State airports for August 2020, according to The Irish Aviation Authority (IAA). @irishexaminer
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