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Renatus’ Weekly M&A Newsletter – 12/02/2023
February 12, 2023
Renatus’ Weekly M&A Newsletter – 26/02/2023
February 26, 2023
February 20, 2023

Digital Marketing Institute acquired by BPP Education, Insteco Ltd acquired by Induchem Group, Hyderus Teoranta is acquired and more in our latest newsletter.

Renatus Private Equity Dublin, Ireland

Renatus Weekly M&A & Company Performance Private Equity Newsletter 19/02/2023

Dear Reader,

Please find below this week’s newsletter covering the latest M&A, company performance, fundraisings and executive moves.

THOUGHT FOR THE WEEK

Across our portfolio, no business has been immune to the unprecedented wave of inflation that hit almost every cost line. Almost all increases could be traced back to container prices, strong dollar prices and of most influence was the cost of energy, driven by gas prices.

With the former two coming back in line in December and January it was great to read this week that European natural gas has hit an 18-month low. Hopefully this points to a true lead indicator for moderating inflation as it feels like price elasticity has been stretched to its limit, with the wider economy unlikely to absorb the ripple effect of another year of mass inflation.

M&A Activity

Digital Marketing Institute acquired by BPP Education

Deal Details: Blackrock-based Digital Marketing Institute has been acquired by BPP Education for an undisclosed sum.

Digital Marketing Institute is a provider of digital marketing courses. The business was founded in 2009 by Ian Dodson and Anthony Quigley and currently employs c. 100 employees. The business does not report turnover or EBITDA information.

BPP Education is a UK-based professional and vocational education company backed by TDR Capital. In FY21, the business reported turnover of £45.0m.

Advisers:
Digital Marketing Institute:
Legal: A&L Goodbody led by Sheena Doggett, Gina Keating, Orla Fenton (Corporate and M&A), Emma Creaven (Commercial Technology) and Stephen Egan (Tax).
Corporate Finance: Raymond James.
FDD: BDO led by Rory O’Keeffe.

BPP Education:
FDD: PwC
Corporate Finance: Houlihan Lokey

Renatus Comment: Since being founded by Anthony Quigley and Ian Dodson in 2008, Digital Marketing Institute has grown to certify over 55,000 professionals globally. Quigley’s journey originally accelerated in the 1990s with Microsoft, before he embarked on a career as a serial entrepreneur with his first company Net Results, before establishing the Digital Marketing Institute. The business received €26m in funding in 2017, with Quigley subsequently becoming a minority shareholder. Quigley’s passion for entrepreneurship has not stopped there, having also founded the Code Institute and most recently the Corporate Governance Institute. At 61, Quigley is proving that age is but a number, with his passion for entrepreneurship burning as brightly as ever.

Source: Business Post

Insteco Ltd acquired by Induchem Group Ltd

Deal Details: Insteco Limited has been acquired by Induchem Group Ltd. Deal consideration was not disclosed.

Insteco Limited is a Cork-based distributor of process instrumentation to customers across the Life Sciences, Pharmaceutical, Dairy, Semiconductor, Food & Beverage, and General Utilities sectors. It was established in 1993 and was previously owned by Jude O’Keeffe and Alan Breen. It does not report turnover or EBITDA information.

Induchem Group Ltd is a specilaist provider of fluid-handling equipment with offices in Cork, Dublin, Cheshire and Glasgow established in 1982. In 2019, it was acquired from owner David Carroll by global industrial group Axel Johnson. Axel Johnson is made up of over 190 companies in 33 countries. Induchem had FY Dec 21 turnover of c. €14.4m which converted to EBITDA c. €1.7m.

Advisers:
Insteco Limited: 
Corporate Finance: IBI Corporate Finance led by Raymond Donegan and Robert Coyle.
Legals: Holmes led by Stephen Walker and Ciara Downes.

Induchem Group:
Corporate Finance: Deloitte led by Derek Murphy.
Legal: PJ O’Driscoll led by Justin Fennell.

Renatus Comment: The creation of a favourable economic environment in Ireland’s life sciences and pharmaceutical industries over the past several decades, has sustained massive growth in the broader ecosystem of product suppliers and service providers surrounding these industries. Insteco supplies many types of instrumentation to these sectors and should enjoy continued success under the Induchem umbrella, with the downstream of activity from the wider sector continuing to be a key feature of deals.

Source: Axel Johnson Press Release

Hyderus Teoranta acquired by FINN Partners, Inc.

Deal Details: Hyderus Teoranta has been acquired by FINN Partners, Inc. Deal consideration was not disclosed.

Hyderus Teoranta is a Wexford-based, health-focused communications firm which provides guidance on health policy issues to leading biopharma companies and NGOs. It was owned by Mark Chataway and Christopher Nial. It does not report turnover or EBITDA information.

FINN Partners is a global independent marketing and communications agency, based in New York. Its Global Health practice generates over $50m in revenue annually.

Advisers: None Mentioned.

Renatus Comment: This deal follows FINN Partners’ acquisition of 360, another Irish public relations and lobbying business, in 2021. As we saw with Penta’s acquisition of Hume Brophy last month, it can make a lot of sense for smaller firms in this industry to sell to international groups, given the increasing emphasis on global reach and cross-border communication campaigns, especially in the public health sphere that Hyderus Teoranta operates in.

Source: Cap IQ

PIB Group acquires Landmark Insurance and Halligan Insurances

Deal Details: PIB Group Ltd (‘PIB’) has acquired Landmark Insurance and Halligan Insurance. Deal considerations were not disclosed.

PIB Group Limited is a group of insurance advisory businesses providing advisory, analytics, claims management, premium funding, and risk management solutions. The business was founded in 2015 by Brendan McManus and is backed by private equity firms Apax Funds and The Carlyle Group. It is headquartered in London. In FY21, it recorded a turnover of c. £230.9m, which converted to an EBITDA of c. £44.5m.

Landmark Insurance is a Dublin-based insurance broker that mainly operates commercial and personal lines along with a niche life and pensions business. In FY Dec 21 it reported turnover of c. €850k. It was owned by Mark Pringle and Kenneth Treacy.

Halligan Insurances is Dublin-based provider of insurance products and services to members of trade unions, affinity groups and staff organisations. It was previously owned by Brian Halligan, Colm Stafford and a number of smaller shareholders. It had FY21 turnover of €1.1m.

Advisers:
PIB:
Legal: DLA Piper led by Matthew Cole, Maria Hickey and Dara McDonald.
Financial and Tax DD: Mazars led by Mark Mulcahy, Anthony Shiel, Kevin Hogan, Robbie Graham and Gerry Vahey, Nicole Hanlon.

Halligan Insurances:
Corporate Finance: PKF led by David Lucas and Patrick Keane.
Legal: Mason Hayes & Curran led by Cara Cooke and Andrew Fenton.

Landmark Insurance:
Legal: Wallace Corporate Counsel led by Gar Smyth and Sean Hiney.

Renatus Comment: PIB Group continues to pursue its aggressive consolidation strategy. Last year it made 6 acquisitions in the Irish market through its subsidiary Campion Insurance, before acquiring McGivern Insurance Brokers in January 2023. It has said that it expects to complete several more deals this year as it continues to target specialist insurance providers.

Source: PIB Group Press Release

Topfloor Systems acquired by Grafenia plc

Deal Details: Grafenia plc has acquired Topfloor Systems for a reported consideration of c. €6.2m.

Topfloor Systems is a Dublin-based supplier of software services for the property sector used by property agents, property owners, landlords, and tenants. The business is owned by George Murphy, Niall Wrafter, and Cathal Browne. The business does not report turnover or EBITDA information.

Grafenia plc is a UK-based business that builds software-as-a-service (SaaS) systems. In FY22, the business reported turnover of c. £8.9m which converted to an EBITDA of c. £0.2m.

Advisers:
Topfloor Systems:
Corporate Finance: Chapman Cole Advisory Limited
Tax: McCarthy Tax
Legal: BHSM LLP

Grafenia plc:
None mentioned.

Renatus Comment: Topfloor Systems was featured in the 2009 Deloitte Technology Fast 50, a ranking of the 50 fastest-growing technology companies in Ireland and has since expanded its growth to the UK market. The deal will extend Grafenia’s SaaS offering as it embarks on its fourth acquisition and furthers its renewed focus on its software offering. In May 2022, Grafenia sold the manufacturing arm of its business in order to focus on its SaaS offering, with its chairman describing the software arm as consistently cash-flow generative for the business. Given the diversified nature of the portfolio of SaaS offerings under the Grafenia brand, the expertise of Topfloor executives Niall Wrafter (CEO) and Cathal Browne (CTO) will be retained as they continue in their existing roles.

Source: InvestEgate

Westerwood Global acquires NStar Global Services

Deal Details: Westerwood Global has acquired NStar Global Services. Deal details have not been disclosed.

Westerwood Global provides Managed Service Solutions to the semiconductor, solar panel, LED and storage industries. The business is based in Kildare and was founded by Basil Holihan in 2000. The business had FY21 turnover of €16.4m which converted to an EBITDA of €2.4m.

NStar Global provides asset relocation, facility and equipment maintenance and workforce management services. The business is based in North Carolina and does not report turnover or EBITDA information. It is led by CEO, Darren McDaniel.

Advisers: None mentioned.

Renatus Comment: In 2019, Westerwood received Private Equity backing from UK-based Perwyn, which purchased 49% of the shares in Westerwood. The deal at that time allowed Basil Holihan to monetise some of his success, de-risk and focus on the growth of the Kildare-founded business. Following the investment, Westerwood has gone on to expand its global presence, opening 3 locations in the US since 2019.

Source: Sunday Times

COMPANY PERFORMANCE

Michael Guiney Limited, trading as Guineys, is a Dublin-based retailer of bedding, curtains and home furnishings. It was established by Michael Guiney in 1971 and now operates stores across Ireland. It is still owned by Michael and several other members of the Guiney family.

In its financial year to January 2022 the business generated a turnover of c. €22.6m, an increase of 19.2% year-on-year. This converted to c. €2.9m of EBITDA, an increase of 10.3% year-on-year. The increase in EBITDA was primarily driven by increased revenue.

The business finished the year with a cash balance of c. €3.3m, a c. €0.7m increase on FY21. Significant post-EBITDA cash movements included working capital investment, the purchase of fixed assets and dividends paid.

The business employed an average of 179 people during the period at a total cost of c. €4.2m.

Morrow Group Limited is a Belfast-based civil engineering business working in the installation and maintenance of electricity, water, sewerage, gas, street-lighting, rail, and telecom supplies throughout the province. The business has been in operation for c. 40 years and is owned by John Morrow.

In its financial year to April 2022, the business generated a turnover of c. £41.9m, an increase of 44.0% year-on-year. This converted to an EBITDA of c. £8.3m, an increase of 68.3% year-on-year. The business realised operating leverage over the year which drove an increase in EBITDA margin.

Significant post-EBITDA cash movements include payments to acquire tangible assets of c. £3.3m and a c. £1.2m investment in working capital. The business finished the year with a cash balance of c. £11.9m, a 50.5% year-on-year increase.

The business employed an average of 154 people in FY22 at a total cost of c. £6.6m.

RECENT FUNDRAISINGS

Who: Chupi, a Dublin-based jewellery designer making solid gold, diamond, and gemstone jewellery.

What: The business has raised €3.75m of funding from a mix of backers including Business Venture Partners (BVP), Abbey Finance, and Permanent TSB (PTSB).

Why: The funding will be used to enhance the brand’s online augmented reality offering that allows shoppers to digitally try on a ring from anywhere in the world.

Advisers:
Financial: IBI led by James Doody and Ben Murphy.
Legal: LK Shields led by Emmet Scully and Kristofer O’Shea.

Source: Independent

Who: Newswhip, a Dublin-based predictive media monitoring firm.

What: The business has raised $13m in a funding round led by London-based AshGrove Capital.

Why: The business will use the money to grow its operations, with plans to increase its workforce by 50% between now and 2024.

​​​​​​​Advisor: Pegasus Capital

Source: RTE

Who: Astatine, a Dublin-based company that delivers tailored renewable energy projects using solar PV and heat pumps.

What: The company has raised €15m in funding with an option to add another €10m, from Solas Sustainable Energy Fund ICAV.

Why: The funds will be used to deliver projects that target the decarbonisation of industrial and manufacturing businesses.

Source: RTE

Who: PacSana, an Irish homecare tech company that sells products, including wearable technology, to help elderly people live independently.

What: The company has raised €1 million in funding in a round led by Eoghan Quigley and Richard Hayes.

Why: The funding will be used to target expansion in the US market where the company has focused its operations over the past two years, following its last fundraise in 2021.

Source: Irish Times

Who: Overhaul, an Irish-founded supply chain software company led by Barry Conlon and David Broe.

What: The business has raised €36.7m in funding in a Series B round led by Edison Partners.

Why: The funding will be used to expand the Overhaul team, with the company looking to grow beyond its current core market in North America.

Source: Sunday Times

Who: MoCo, a non-bank mortgage lender, headquartered in Dublin and founded by former AIB executive Patrick Good.

What: The business has raised c. €1.4m from Dutch bank, NIBC.

Why: The funding will be used to continue developing MoCo’s platform.

Source: Sunday Times

Who: Limerick Twenty Thirty, the Limerick-based property developer.

What: The organisation has received €80m in funding under a joint venture partnership with the Ireland Strategic Investment Fund (ISIF).

Advisers:
Limerick Twenty Thirty
Legal: Holmes led by Sandra Egan, Lorraine Power and Gillian Butler (Commercial Real Estate team), Lisa Killeen and Nicola Hackett (Banking & Finance and Construction teams) and Caroline Connolly (Corporate).

Why: The funding will be used to fund the One opera Square project in Limerick city centre.

Source: Holmes Press Release

EXECUTIVE AND BOARD APPOINTMENTS

We in Renatus believe that more important than the deals are the people and we are pleased to provide you with details of key recent executive and board-level appointments.

Patrick Keane

Source:
(Google Images & LinkedIn)

Siobhán McHugh

Source:
(Google Images & LinkedIn)

Denise Tully

Source:
(Google Images & LinkedIn)

Sarah Hickey

Source:
(Google Images & LinkedIn)

Georgina Carpendale

Source:
(Google Images & LinkedIn)

Leigh Quilty

Source:
(Google Images & LinkedIn)

@RenatusCapital Tweets

13.7%

The increase in the average private rent in Ireland in Q4 2022 on the same period in 2021, according to @daftmedia.

17.8%

The increase in consumer spending in January on the same month last year, according to @RevolutApp.

€208bn

The level of Irish goods exports in 2022, a new record and a €42bn increase on 2021, according to @CSOIreland.

7.8%

The growth rate in Irish house prices in the 12 months to December 2022, down from 8.5% on the 12 months to November, according to @CSOIreland.

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ABOUT RENATUS

Renatus was established in 2014 to provide growth funding to growing Irish SMEs and to partner with ambitious management teams to help companies reach their full potential.

Renatus targets companies with sustainable earnings of €1m+ and valuations typically in the range of €5m – €20m. Our typical solutions include:

  • Succession planning
  • Management buyouts
  • Management buy-ins
  • Growth financing – both organic and acquisition growth financing
  • Full and partial share sale.
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    Adrian Stackpoole, Digital Marketing Associate

    • Adrian joined Renatus in 2018, initially as a Marketing Executive before moving into the role of Digital Marketing Associate. As part of his role, Adrian manages all the digital marketing aspects of Renatus as well as conducting digital research for portfolio companies.
    • Adrian holds with a BBS degree in Marketing and Entrepreneurship from the University of Limerick, as well as a Postgraduate degree from The Digital Marketing Institute.
    • Prior to joining Renatus, Adrian worked in New York with a start-up hospitality group, specalising in marketing and operations.
    TIERNAN O’HAGAN

    Tiernan O’Hagan, Associate

    • Tiernan recently joined Renatus Capital Partners as a Private Equity Associate. As part of his role, he researches and analyses the potential of new investments and acquisitions
    • Tiernan graduated with a B.Sc in business and law from DIT Aungier street & an MSc. in Entrepreneurship from Trinity College Dublin.
    • Previously worked with Capnua Corporate Finance for three months during a summer internship.
    • Tiernan is also in the process of sitting ACCA exams.
    Bronagh Kearns Renatus

    Bronagh Kearns, Associate

      • Bronagh recently joined Renatus as a Private Equity Associate. As part of her role, she will be researching and executing investment opportunities.
      • Bronagh holds a MSc in Quantitative Finance from UCD Michael Smurfit Business School and a BSc in Finance from University College Cork. Currently, Bronagh is in the process of obtaining the ACCA qualification.
      • Prior to joining Renatus, Bronagh worked as an Investment Banking Analyst in Rubicon Capital Advisors where she worked on M&A transactions on the execution side and financial modelling in the infrastructure sector. She also worked as an Investment Associate in River and Mercantile Solutions in London quantitatively screening different investment opportunities across all asset classes.
    Alan Manning Renatus

    Alan Manning, Associate

    • Alan joined Renatus Capital Partners in September 2021 as a Private Equity Associate. As part of his role, Alan researches and analyses potential investments and acquisitions.
    • Alan holds a B.Sc Finance from University College Cork.
    • Previously working in KPMG’s Consulting division, with the Financial Management Consulting team. During his time there he was engaged on a Finance Function Review for a European Travel Technology firm, and a review of the cash management strategy of an Irish Commercial Bank.
    • In the process of sitting ACCA exams.

    Conor Hall, Associate

    • Conor joined Renatus Capital Partners in June 2018 as a Private Equity Associate. As part of his role, Conor researches and analyses potential investments and acquisitions.
    • Conor holds an M.Sc. in Quantitative Finance from UCD Michael Smurfit Graduate Business School and a B.Sc. in Economics & Finance from UCD. He is currently working towards attaining the ACCA and CFA qualifications.
    • Prior to joining Renatus, Conor worked as an Analytics Analyst with Accenture, specialising in predictive modelling for fraud.

    Kyle Barry, Associate

    • Kyle joined Renatus Capital Partners in June 2016 as a Private Equity Associate. As part of Kyle’s role, he researches and analyses the potential of new investments and acquisitions.
    • Since joining, Kyle has worked on numerous transactions, including Simtech and Rennicks, and has worked with Renatus’ investee companies on a number of strategic projects.
    • Kyle holds an MSc. in Quantitative Finance (University College Dublin) and a BA Finance (Maynooth University). Currently, Kyle is in the process of completing the ACCA qualification.
    • Prior to joining Renatus, Kyle spent 15 months in Intel’s Finance department where he worked across the financial reporting, tax and capital financing teams.

    Philip Gardiner, Associate Director

    • Philip is an Associate Director with Renatus Capital Partners, having first joined the firm as its first employee in 2014.
    • Philip has responsibility for screening, assessment and structuring of new acquisitions.
    • He has worked on a number of transactions at Renatus including Boojum Mexican Restaurants and Simtech Aviation. Philip works actively with the boards of Boojum and Simtech Aviation.
    • Prior to joining Renatus, Philip spent four years in AIB’s corporate banking team where he worked on a mix of real estate and cash flow lending deals.
    • Philip is a member of the ACCA and holds an MSc. in Financial Services and a Bachelor in Business Studies, both from the University of Limerick.

    Jane Martin, Marketing and Administration Manager

    • Jane joined Renatus Capital Partners in June 2019 as a Marketing and Administration Manager. As part of Jane’s role, she writes the weekly newsletter, works on the CRM and looks after the admin and ad hoc tasks
    • Prior to joining Renatus, Jane worked as a Senior Account Manager in Mace Promotions where she worked closely with many SMEs as well as large corporations on their marketing projects

    Mark Flood, Director

    • Mark co-founded Renatus with Brendan Traynor in 2014. Prior to establishing Renatus, Mark spent seven years on the senior management team of the Racing Post in various operational and commercial roles. Before founding Renatus, Mark was Managing Director of the Racing Post’s Irish operation.
    • Prior to his career in the Racing Post, Mark was the first employee of FL Partners, an Irish based international private equity firm, where he was actively involved in over €300m worth of transactions.
    • Mark combines his financial, operational and commercial experience to bring value and energy to all partner companies.
    • Mark is a Chartered Accountant and holds a Bachelor of Commerce and Masters in Accounting from NUI Galway.

    Brendan Traynor, Director

    • Brendan is a co-founder of Renatus. Prior to establishing Renatus, he was a Director in BDO Corporate Finance specialising in M&A, MBO’s/MBI’s, debt and private equity fundraising across a diverse range of sectors and clients.
    • His career focus and passion is the Irish SME sector and his deal expertise covers sectors such as retail, manufacturing, FMCG, healthcare, avaiation, media, medical devices, food and agriculture, construction, and hotels and leisure.
    • Brendan is a Chartered Accountant and holds a Bachelor of Commerce from University College Dublin

    Conor Mehigan, Associate Director

    • Conor joined Renatus Capital Partners in 2021 as an Associate Director. Conor has responsibility for screening, assessment and structuring of new investments and acquisitions.
    • Prior to joining Renatus, Conor spent five years in IBI Corporate Finance specialising in M&A, debt and private equity fundraising for private and public companies across a range of sectors. Prior to his career in IBI Corporate Finance, Conor spent four years in Deloitte’s Corporate Finance Division, specialising in Transaction Services
    • Conor is a Chartered Accountant and holds a BSc in Finance from University College Cork

    Greg Dilger, Strategic Advisor

    • Greg Dilger is a former Executive Director of NCB Stockbrokers and Investec Wealth & Investment.
    • He is an investor and advisor to Renatus and brings years of relevant experience to our team.
    • Greg is also currently a Non-Executive Director of Brewin Dolphin Ireland.
    Patrick Dooley Renatus

    Patrick Dooley, Associate Director

    • Patrick joined Renatus in November 2022 as an Associate Director. Patrick has responsibility for screening, assessment and structuring of new investments and acquisitions.
    • Patrick previously held leading positions in Focus Capital Partners, PKF O’​Connor, Leddy & Holmes & EY.
    • Patrick is a charted accountant and holds a Bachelor of Accounting and Finance degree from DCU, along with a Masters degree in Accounting from TUD.

    John Dwyer, Chairman

    • John joined Renatus in 2018 as a Chairman. Prior to Renatus, John spent 30 years at PwC in the UK, 20 years as a Partner, John led the UK and Global Deals business at PwC and was an executive board member of the UK firm.
    • Prior to that, John led the UK and Global Private Equity business at PwC and worked with firms including 3i Group, Apax Partners, CVC Capital Partners and Cinven.
    • John is married to Natasha and they have three children. John works between Dublin and London and his charity work includes chairmanship of Irish Youth Foundation UK.
    • He is an advisor and Board member of Irish digital marketing firm Pigsback and media firm Racing Post.
    • John is a Chartered Accountant and holds a Bachelor of Commerce from UCD.