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Renatus’ Weekly M&A Newsletter – 12/03/2023
March 12, 2023
Renatus’ Weekly M&A Newsletter – 26/03/2023
March 26, 2023
March 19, 2023

MTM Engineering acquires CET Connect, Farm Week acquired by National World PLC, Responsible acquires Haru and much more in our latest newsletter.

Renatus Private Equity Dublin, Ireland

Renatus Weekly M&A & Company Performance Private Equity Newsletter 19/03/2023

Dear Reader,

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

THOUGHT FOR THE WEEK

There is a narrative that the world is crumbling, and it is a terrible start to the year across the board with Silicon Valley Bank, Credit Suisse, and First Republic Bank in the news. US and European stocks also took a tumbling turn this week as the world continues to navigate through these swift and dramatic events.

It is a fragile time in the world, but it should be noted that year-to-date the S&P 500 is up 2%, Nasdaq is up 12% and STOXX Europe 600 is up 2%.

M&A Activity

MTM Engineering acquires CET Connect

Deal Details: MTM Engineering has acquired CET Connect for an undisclosed amount.

MTM Engineering is a Specialist Electrical and Mechanical Contracting business that was founded in 1997 by Martin & Patricia Mee. The business is now a second-generation family company, headed by Brendan Mee. In FY21, the business reported turnover of c. €40.2m which converted to an EBITDA of c. €4.2m.

CET Connect is a Dublin-based provider of structured cabling and data centre infrastructure services in Ireland, the UK, and France. The business was established in 1999 and in FY22, the business reported turnover of c. €9.7m which converted to an EBITDA of c. €833k.

Advisers:
CET Connect:
Corporate Finance: Novacies Capital led by Ciaran McGloin.
Legal: Eversheds led by Enda Newton, Tara O’Donoghue (Corporate), Emile Mullan (Corporate), Robert Dever (Tax), Gillian Blanche (Real Estate) Ellie Cater (IP/Technology) and Conor Fynes (Employment).
Tax: Grant Thornton led by Liam Kenny which consisted of Caroline Kennedy, Lorcan O’Rourke and Elaine Flynn.

MTM Engineering:
​​​​​Legal: Matheson led by Robert Maloney-Derham, Jenny Keenan, Donal Feehan and Ciarán Murray

Renatus Comment: It is truly astonishing how Irish companies are building the global cloud. This includes CET Connect, MTM Engineering, and other increasingly global Irish based players such as Mercury, KN Networks subsumed into Circet, Winthrop, Dornan, H&MV, E and I and many more. The acquisition of CET Connect supports a buy-and-build strategy that will help expand MTM Engineering’s customer offerings. CET Connect’s client base consists of a variety of IT infrastructure projects across diverse sectors including Data Centres, Pharmaceutical, Healthcare, and Commercial. The acquisition will bring MTM Engineering’s total headcount to over 650.

Source: Matheson Press Release

LC Financial Holdings acquires Link Group’s Banking and Credit Management Division

Deal Details: LC Financial Holdings (LCFH) has acquired Link Group’s Banking and Credit Management Division subject to approval for a reported c. €30m.

LCFH is based in Dublin and is the parent to four businesses including LCM Partners, a credit investment business. LC Financial has been in operation for 25 years with 14 offices in 9 countries. In FY21, the business reported turnover of c. €84.6m which converted to an EBITDA of c €13.8m.

Link Group is an Australia-based pensions administrator which services the fourth-largest pension pool in the world based on funds under management.

Advisers:
LC Financial Holdings:
FDD: Deloitte led by Derek Murphy and Daniel McCrea
Tax DD: Deloitte led by Shane Wallace and John Fitzgibbon.
Legal: Dentons led by Shane O’Donnell and Michael McDonald.

Link Group:
None Mentioned.

Renatus Comment: This deal will add a new roster of banking and investor clients in Ireland, UK, Italy and the Netherlands for LCFH as the business continues to expand. In 2021, it was reported that LCFH had made a €65m bid for the business. However, the reported terms indicate that Link Group will receive €20m cash consideration at completion – expected in the second half of 2023 – plus deferred cash consideration of €5m payable within 12 months of completion and cash earn out of €5m subject to the divested business meeting certain financial targets by the second anniversary of the sale.

Source: Business News Australia

Farm Week acquired by National World PLC

Deal Details: Farm Week has been acquired by National World PLC for an undisclosed amount.

Farm Week is a farming coverage newspaper that has been in operation in Northern Ireland since 1961. The business does not report turnover or EBITDA information.

National World PLC is a UK-based operator of national news brands. In FY22, the business reported a turnover of c. £84.1m, which converted to an EBITDA of c. £9.8m.

Advisers:
None Mentioned.

Renatus Comment: The acquisition of Farm Week will further enhance National World PLC’s Agri exposure which already consists of the publication Farming Life. Farm Week’s first issue was published in 1961 at a time when Northern Ireland had a reported 46k farm businesses with an average farm size of 37 acres. There has been a lot of consolidation in farming and newspapers since then.  The business was then acquired by the Irish News in July 2006. This marks National World PLC’s third acquisition in the Northern Irish market this year as it acquired The Newry Reporter in January 2023 and Banbridge Chronicle in February 2023.

Source: Belfast Telegraph

Responsible acquires Haru

Deal Details: Responsible has acquired fashion re-commerce provider Haru for an undisclosed amount.

Responsible is a Belfast-based business that focuses on refurbishing streetwear. It is majority owned by Mark Dowds and Mitchell Doust and it does not report turnover or EBITDA information.

Haru is a Belfast-based eCommerce provider focused in on the second-hand fashion industry that has supported over 550 charity shops across the UK and Ireland. The business was founded by childhood school friends Jacques Hill and Sam Lynas. The business does not report turnover or EBITDA information.

Advisers:
None Mentioned.

Renatus Comment: In 2022, Responsible raised $6.6m in a seed funding round led by Barclays to help support growth ambitions. The integration of both platforms will help to increase market share  in the global second-hand apparel market. In August 2022, data from Revolut showed a 60% increase in the number of people buying second-hand clothes. Many aspects are driving a boom in the Irish pre-loved market including ESG conscious individuals opting to buy clothes that are local and sustainable. There is also a cost of living crisis that has many consumers looking for cost saving options.

Source: Irish News

Corporate Care Relocation acquires Accent Relocation

Deal Details: Corporate Care Relocation (CCR) has acquired Accent Relocation for an undisclosed amount.

CCR was founded in 1997. The business provides assistance for employees moving from one location to another. CCR was originally based in Cork and it has since expanded its operations to Dublin. The business is majority owned by Brian Kelly and Frank Morley and it does not report turnover or EBITDA information.

Accent Relocation is a UK-based relocation services provider. The business does not report turnover or EBITDA information. The business is owned by Leonia Newman John Adamson.

Advisers:
Corporate Care Relocation:
Legal: Regan Wall led by Kieran Regan and Sarah Connolly and Spencer West LLP in London.

Accent Relocation:
None Mentioned.

Renatus Comment: This marks  CCR’s second acquisition  as it acquired The Relocation Bureau, an Irish-based relocation business in 2019. This deal presents additional expansion opportunities for CCR as it will gain access to new UK-based  prospects. Ireland consistently ranks among the top countries in the world in which to do business, supporting FDI growth. According to the IDA, it is 3rd ranked globally for high-value FDI projects.

Source: Regan Wall

DEAL UPDATES & OTHER NEWS

Ørsted acquires second Irish solar project

Deal Details: Ørsted has completed its second Irish solar project acquisition. The new project is with developer Terra Sola and includes Garreenleen solar farm in Carlow which has the ability to add 160MW, powering up to 56,000 homes. Ørsted ranks as the world’s most sustainable energy company in Corporate Knights’ 2021 index of the Global 100 most sustainable corporations in the world and is recognised on the CDP Climate Change A List as a global leader in climate action.

Source: Irish Examiner

COMPANY PERFORMANCE

Lunn’s Jewellers (“John H. Lunn Jewellers Limited”) is a family run  jewellery business based in Belfast. The business has been in operation for over 60 years and it is majority owned by Peter and Jacqueline Lunn.

In its financial year to February 2022, the business generated a turnover of c. £27.1m, an increase of c. 75% year-on-year. This converted to an EBITDA of c. £2.9m, an increase of c. 54% year-on-year. EBITDA improvements are due to increased gross margins and reduced overheads as a proportion of revenue.

Significant post-EBITDA cash movements include payments to acquire tangible assets of c. £1.1m and loan repayments of c. £0.9m. The business finished the year with a cash balance of c. £1.3m, a £0.8m year-on-year increase.

The business employed an average of 93 people in FY22 at a total cost of c. £4.4m.

Parklands Holiday Park (“O’Loughlin Holiday Park Ltd”). is an operator of a holiday park and seller of mobile homes in Co. Wexford. It is principally owned by Thomas O’Loughlin and Yasmin O’Loughlin.

In its financial year to December 2021 the business generated a turnover of c. €8.0m, an increase of 8% year-on-year. This converted to c. €3.4m EBITDA, an increase of 133% year-on-year. The increase in EBITDA was driven by improved gross margin and the realisation of operating leverage in the business.

The business finished the year with a cash balance of c. €1.2m, a c. €1.0m increase on FY20. Significant post-EBITDA cash movements included working capital investment and payments to acquire tangible assets.

The business employed an average of 112 people during the period at a total cost of c. €0.9m.

RECENT FUNDRAISINGS

Who: Amarenco, a Cork-based solar energy business.

What: The business has secured €300m in funding led by Arjun Infrastructure Partners.

Why: The funding will be used to support growth.

Advisers: Holmes led by Stephen Walker, Ciara Downes and Rachel Jones (Corporate team) and Kevin Harty (Banking & Finance team).

Source: Holmes

Who: Zirkulu, an outdoor apparel company founded by Jack Norman and Fionn McCarthy, which is based in Cork.

What: The company has raised €250,000 which can be matched by Enterprise Ireland and Local Enterprise Office grants.

Why: The company will use the funding to expand its brand with Irish and UK retailers as well as growing its online presence in Europe and North America.

Source: Business Plus

Who: Fire1, a Dublin-based Medtech company focused on improving outcomes for people living with chronic diseases.

What: The business has closed a $25m funding round led by Andera Partners and Novo Holdings.

Why: The capital will be used to accelerate the development of its novel remote monitoring solution to improve outcomes for heart failure patients.

Advisers: Arthur Cox led by Sophie Frederix (Corporate and M&A) and included Tim Gleeson, Sarah O’Reilly and Susan O’Leary (Corporate and M&A) and Olivia Mullooly (Technology and Innovation).

Source: Arthur Cox

Who: Vivasure, a Galway-based Medtech company founded in 2009 which has developed a synthetic polymer implant called PerQseal.

What: The business has secured €30m of funding from Boston-based Haemonetics, bringing its Series D fundraising round from last year to a total of €52m.

Why: The funds will be used to launch a study to prove the low complication rate and high technical success of PerQseal.

Source: Business Post

Who: Apexx, an Irish co-founded payments platform that combines acquirers, gateways, shopping carts and alternative payment methods into a single API connection.

What: The business has raised $25m in funding led by MMC Ventures.

Why: The fundraise will be used to further develop its technology and expand its presence in North America.

Source: Business Post

Who: CurrencyFair, an Irish peer-to-peer currency exchange marketplace.

What: The business has secured $10m in venture debt.

Why: The venture debt will be used to sustain organic growth for the business.

Source: Business Post

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.

Jennifer Holohan

Source:
(Google Images & LinkedIn)

Graham ​​​Fitzgerald

Source:
(Google Images & LinkedIn)

@RenatusCapital Tweets

50bps

The European Central Bank’s increase of euro zone interest rates on the 16th of March. According to @RTE

8.5%

The annual rate of inflation in February 2023. According to @CSO

12.1%

The year-on-year increase of individuals employed in the Accommodation & Food Service Activities sector at January 2023. According to @CSO

3%

The reduction in the number of new cars licensed in February 2023 compared with February 2022. According to @CSO

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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.