Renatus Weekly M&A & Company Performance Private Equity Newsletter 22/01/2023

Deal Details: Sports Surgery Clinic Santry has been acquired by UPMC. Deal consideration has not been disclosed and the deal is subject to approval by the CCPC.

Sports Surgery Clinic is a 101-bed private sports clinic in Santry, Co. Dublin. It was established in 2007 by surgeon Ray Moran with financial backing from several other surgeons and private investors including his brother Kevin Moran who is a former Man Utd. footballer. In FY Dec 21, it reported turnover of c. €59.1m which converted to EBITDA of c. €11.3m. In 2019 it received private equity investment from Carlyle Cardinal Ireland.

University of Pittsburgh Medical Centre (UPMC) is a $24bn not-for-profit healthcare operator based in Pittsburgh, USA. It has 92,000 staff members. Its Irish operation is led by David Beirne.

Advisers:
UPMC:
CF: TowerView team of Diarmuid McNamee, Daire Gilmore, Philip O’Donnell, Jamie McAleese.
Legal: DLA team of David Carthy, Steven Duggan, Jack Jelly.

SSC:
Legal Advisors: Matheson led by George Brady.

Renatus Comment: The Sports Surgery Clinic’s rapid growth has seen it become the largest orthopaedic surgery and specialist sports medicine hospital in Europe. Last year it submitted a planning application to build a four-storey, 11,000 sqm extension to cater for future demand. This will be the fourth hospital operated by UPMC in Ireland, following its acquisition of facilities in Waterford, Kilkenny and Clane. It also operates two radiotherapy centres, three sports medicine clinics and several outpatient facilities in Ireland.

The Private Hospitals Association comprises of 18 hospitals throughout Ireland which includes the Beacon Hospital (Denis O’Brien), Blackrock Clinic (Larry Goodman) and the Mater Hospital (InfraVia Capital Partner). Given the current strain on the public system, these Hospitals are likely to remain prized assets for the foreseeable future.

Source: Independent

Deal Details: Version 1 has acquired Automation Logic and Qubix for an undisclosed amount.

Version 1 is a Dublin-based provider of IT services and solutions. In FY21, the business reported turnover of c. €190.2m which converted to an EBITDA of c. €32.7m.

Automation Logic is a UK-based IT consultancy business. The business was principally owned by Kristian Saxton and Norm Russell and reported FY Dec 21 turnover of c. £14.2m which converted to an EBITDA of c. £2.3m.

Qubix is a UK-based global Oracle Platinum partner. It was owned by Robert Lutener. The business did not report turnover or EBITDA information.

Advisers:
Version1:
Legal: Maples led by Paddy Quinlan, Jordan O’Brien, William Darmody, Shane Divilly, Claire Morrissey, Lynn Cramer.

Qubix:
Corporate FInance: Clearwater International TMT (London).

Automation Logic: None Mentioned.

Renatus Comment:  The Partners Group acquisition of a majority stake in Version 1 in April last year reportedly valued the business at c. €800m. The new ownership have continued Version 1’s active acquisition strategy, acquiring  Instinctive BI in October last year. These two deals  will further strengthen the company’s presence in the UK public and commercial sectors and will bring the total number of acquisitions completed by the company  to 16.

Source: Irish Times

Deal Details: First Ireland Risk Management has been acquired by US insurance broker Gallagher for an undisclosed amount.

First Ireland is a Dublin-based insurance brokerage that employs c. 130 people. The business is owned by Anthony Gill, John Roe, Linda Gallagher, Sarah Sheridan, Conor Lyons and Cathal Duffy. In FY 21, the business reported turnover of c. €12.5m which converted to an EBITDA of c. €2.2m.

Gallagher provides insurance brokerage, consulting, third-party claims settlement, and administration services. In FY21, the business reported turnover of c. $6.7bn which converted to an EBITDA of c. $1.6bn.

Advisers:
First Ireland Risk Management:
Deal Advisory: Deloitte led by Jan Fitzell, James Toomey, Ross O’Riordan, Philippa Reynolds, Dylan Gibbons and Caoimhe McLoughlin.
VDD & Tax: Mazars team which included Mark Mulcahy, Anthony Shiel, Michael Smollen, Kevin Hogan, Gerry Vahey and Nicole Hanlon.
Legal: Wallace Corporate Council led by Gar Smyth and Sean Hiney.

Gallagher: None mentioned.

Renatus Comment: Gallagher is embarking on a journey of consolidation in Ireland. It entered the Irish market with the acquisition of Innovu in June 2022 and followed that with a deal to acquire Wexford-based Doyle Mahon Insurances in November. Ronan Foley, chief executive of Gallagher, has reported that the First Ireland acquisition will double Gallagher’s gross written premiums in Ireland from c. €70m to c. €140m.

Source: Independent

Deal Details: Statkraft has sold a 50% stake in the North Irish Sea Array (NISA) off the coast of counties Dublin, Louth and Meath as well as the Bore Array in the Celtic Sea.

Statkraft is a renewable energy company owned by the Norwegian government. It is Europe’s largest generator of renewable energy. In FY 21 it reported turnover of c. €8.0bn which converted to EBITDA of c. €3.0bn.

Copenhagen Infrastructure Partners is a Danish fund management company specialising in global investments in energy infrastructure assets. It has raised c. €100bn to date which it manages across 10 funds.

Advisers:
Statkraft:
Legal: Pinsent Masons led by Oisín McLoughlin, Richard Murphy and Sarah Hope.

CIP:
None mentioned.

Renatus Comment: Statkraft has become one of the largest off-shore wind players in Ireland since it began operations here in 2018.  This marks CIP’s first entry into the Irish off-shore wind market. According to a Baringa report this week, 34% of Ireland’s energy in 2022 was generated by wind, up 4% on 2021. It is likely we will continue to see deals between large international energy companies for off-shore Irish wind farm assets, given the government’s target of having 7GW of offshore wind assets installed by 2030.

Source: Pinsent Masons Press Release

Power Capital Renewable Energy secures €240m funding

Deal Details: Power Capital Renewable Energy (PCRE), an Irish solar farm developer, has secured up to €240m in finance, from a consortium of lenders led by Eiffel Investment Group. A portion of the money will be utilised to build assets through Power Purchase Agreements (PPAs) with Microsoft and an undisclosed technology firm. Following the initial €100m tranche, PCRE stated that an additional €40 million may be made available for international expansion, plus €100m to acquire additional assets.

Advisors:
Power Capital: 
Legal: Philip Lee (Eoghan Doyle and George Kennedy) and Arthur Cox.
Debt advisory: Afiereos Capital

Eiffel Investment Group:
Legal: Eversheds Sutherland.

Source: Business Post

Altada acquired out of receivership by Eoin Goulding

Deal Details: Altada Technology Solutions has been acquired out of receivership by Eoin Goulding through his company Cometgaze. Last week the receiver appointed to sell the business reportedly accepted a bid from Datech led by Jeffrey Leo but this ultimately fell through as the court was told that it would not have been acceptable to the employees of the company. Cometgaze made an offer of €2.5m which has ultimately been successful.

Source: Business Post

Morgan Fuels Ireland Limited is a provider of fuel card services, bulk fuels, lubricants and capital equipment to commercial, agricultural, retail and domestic customers throughout Ireland and the UK. It is based in Dundalk, Co. Louth. It was established in 1981 by Hugh Morgan who remains the largest shareholder alongside Briege Doran and Louise, Michael & Laura Morgan.

In its financial year to March 2022 the business generated turnover of c. €206.9m, an increase of 51.6% year-on-year. This converted to c. €1.0m EBITDA, an increase of 63.3%. The increase in EBITDA was driven by revenue growth.

The business finished the year with a cash balance of c. €0.1m. The primary cash outflow related to the purchase of tangible fixed assets.

The business employed a total of 73 people during the period at a total cost of c. €2.7m.

Gortavoy Feeds & Farm Supplies Ltd was founded in 1982 as a family-run business that supplies the agricultural sector with feed for beef, dairy, sheep, and pigs. The business is based in Tyrone and its owners include Barbara and William Gilkinson.

In its financial year to March 2022, the business generated a turnover of c. £33.3m, an increase of 17.8% year-on-year. This converted to an EBITDA of c. £2.1m, an increase of 12.3% year-on-year.

The business finished the year with a cash balance of c. £2.7m. Significant post-EBITDA cash movements included the purchase of tangible fixed assets and capital repayments.

The business employed an average of 34 people in FY21 at a total cost of c. £1.3m.