Navy-Blue-Logotype-1Navy-Blue-Logotype-1Navy-Blue-Logotype-1Navy-Blue-Logotype-1
  • Business Owners
  • Management Partners
  • Team
  • Portfolio
    • Boojum
    • Simtech
    • Rennicks
    • CRS
    • Kappture
    • Allied Imports Group
    • AQF Medical
    • Irish Rollforming
    • Herdwatch
  • Newsletter
    • Podcast
    • Knowledge Centre
      • The Real Deal 2020
      • The Real Deal 2019
      • The Real Deal 2018
  • Careers
  • Contact
Renatus’ Weekly M&A Newsletter – 02/08/2020
August 9, 2020
Renatus’ Weekly M&A Newsletter – 13/09/2020
September 14, 2020
August 23, 2020

BlackBee Healthcare Fund acquires multiple nursing homes, Irish Central owner acquires Canadian tech start-up, Boylesports in talks over UK bookie acquisition, Private Equity firms consider sale of AA Ireland and much more on this weeks newsletter.

Renatus Private Equity Dublin, Ireland

Dear Reader,

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.

M&A ACTIVITY

BlackBee Healthcare Fund acquires multiple nursing homes

Deal Details: Aperee, the operational arm of BlackBee Healthcare Fund, has completed a transaction to take over the management of the seven Ditchley nursing homes in Cork, Kerry, Kilkenny and Galway for a reported €40m.

Aperee is the operational arm of the BlackBee Healthcare Fund which is a €250m fund allocated for the development of 1,000 new state-of-the-art single en-suite beds and the acquisition of 750 existing beds. Aperee already owns and operates two facilities in Mallow and Tralee which will rise to nine after the Ditchley deal is completed. This will bring the number of beds to just under 500 operated by Aperee.

Advisers: Kieran Regan, Partner at ReganWall, and Ronan Murray, Lead Financial Advisory Partner for Deloitte in Munster advised the Ditchley Group on the transaction.

Renatus Comment: Regulations in this space are likely to get tougher, particularly on space per patient and double rooms etc., and costs to comply with more stringent regulations are likely to come through as a result of Covid and the likely increased budget allocation to stay-at-home options.

However, in spite of all of this, the market size is unlikely to shrink.

Ireland has an aging population and it is predicted by the CSO that those aged 65 and over will increase significantly from c. 630k as of 2016 to c. 1.6m by 2051.

There has been transactional activity in the space this year with the French Nursing Care giant, Orpea Groupe, acquiring TLC Nursing Home portfolio for an estimated €150m. It has also been reported that the Orpea Groupe are interested in buying 50% of Brindley Healthcare, a chain of 10 homes.

Source: The Irish Examiner, BlackBee

Irish Central owner acquires Canadian tech start-up

Deal Details: Studio Media group has acquired Canadian Tech start-up Darwin CX for $7.46m Candian Dollars (c.€4.77m) from Zoomer Media.

Darwin is a SaaS customer experience orchestration platform that uses AI to drive acquisition and retention for subscription-based companies.

Studio Media Group was created by lead investor and Co-Chairman Liam Lynch to acquire and grow premium media brands and service providers. Studio Media is a premier, cross-platform digital media company with a global reach of over 10m in Ireland and the United States. Most notably the business owns the Irish central website.

Advisers: None mentioned.

Renatus Comment: The Irish Media market has been very active in recent months which has defied the odds of Covid-19. This is a typical buy and build play by Studio Media. By strategically purchasing a company that can complement  its existing serving offerings, will no doubt lead to increased cross and up selling synergies.

Source: The Irish Times, Darwin CX

DEALS IN THE MAKING

Boylesports in talks over UK bookie acquisition

Dundalk-based betting company Boylesports is in advanced negotiations over its fourth acquisition in the UK. This is part of a wider strategic plan to build a significant retail presence in the UK and achieve around 100 regional UK shops, excluding the London area.

They bought Mulholland Bookmakers in Galway last year and Bruce Betting in Dublin earlier this year and had made a number of smart acquisitions when the economy was challenged c. ten years ago.

It is understood that they are also looking at expansion opportunities into North America and Asia.

Source: The Irish Examiner

Private Equity firms consider sale of AA Ireland

It is reported that PE firms Carlyle Cardinal Ireland (CCI) and Carlyle Global Financial Services Partners are considering the sale of AA Ireland after they acquired the company in 2016 for c. €156m. It is believed that a bid to buy AA Ireland emerged in the past few months and is currently under active consideration.

In its latest set of published accounts (Jan ’19), the company reported a 3.04% increase in turnover to c. €60.3m while EBITDA was up 0.19% to c. €20.0m.

Source: The Sunday Times

SHARE SALES

Radio Two Thousand increases shareholding in Newstalk

Radio Two Thousand, a subsidiary of Denis O’Brien’s Communicorp, has increased its shareholding in Newstalk after acquiring shares from the Loyola pub and restaurant group for an undisclosed sum.

Following the transaction, Radio Two Thousand will increase its shareholding in Newstalk to over 90%. The company was already the majority shareholder in Newstalk prior to this transaction.

Communicorp is the largest player in Ireland’s independent radio sector and also owns Today FM, 98FM and Spin.

Source: The Sunday Times

COMPANY PERFORMANCE

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 Sligo, Coolmine Healthcare operates a nursing home in Dublin with 59 bedrooms and a capacity of 63 residents. The home is currently at full capacity.

In its latest fiscal year, the company saw revenue increase by 3.3% to c. €3.9m while EBITDA also increased by 4.0% to c. €1.1m. There was a net cash increase of c. €5k after negative changes in working capital of c. €120k and loan repayments of c. €410k.

The company employed an average of 71 employees during the year at a cost of c. €1.9m. The company is owned by Maire (50%) and Joseph (50%) Gallagher.

Based in Tyrone, The Foyle Food Group operates nine state-of-the-art meat processing plants throughout the UK and Ireland and is the largest single species food processor in the UK.

In its latest fiscal year, the group saw revenues increase marginally by 2.6% to c. £370.7m. This resulted in a significant increase in EBITDA of 36.9% to c. £10.1m. There was a net cash increase of c. £12.9m after positive movements in working capital of c. £6.7m, fixed asset purchases of c. £1.7m and loan repayments amounting to c. £1.8m.

The company employed an average of 1,284 employees during the year at a cost of c. £36.8m. The company is 100% owned by the Acheson family.

Based in Cork, Lucey Transport is a specialist logistics provider and distributor to the Beverage, Confectionary and Packaging sectors.

In its latest fiscal year, the company saw turnover increase by 8.6% to c. €21.8m. This coupled with increased gross margins led to a 21.0% increase in EBITDA to c. €3.2m. The company had a net cash increase of c. €3.6m after fixed asset purchases of c. €600k and a new loan of c. €1.6m.

The company employed an average of 134 employees during the year at a cost of c. €5.5m. The company is 100% owned by Kevin (56.6%), Ronan (18.87%) and Juan Lucey (24.53%).

RECENT FUNDRAISINGS

Who: Offr, a property tech start-up co-founded by former BidX1 auctioneer Robert Hoban has raised funding. The company provides secure and transparent bidding and transaction technology for the property industry, streamlining the bidding and transaction process for Realtors.

What: €3m in funding led by Barclays Bank and London-based digital marketing firm Jellyfish. Several British and Irish Angel investors have also been involved in the funding round. VCs Frontline Ventures and Enterprise Ireland are among the 30 Backers of Offr. Hogan & Associates provided financial advice.

Why:  The funds will be used for expansion and to integrate its technology with large property websites in Ireland and Britain. In addition, its core equity partner Jellyfish will boost Offr’s digital marketing as it seeks expansion in Australia and the UK.

Source:  Irish Independent

Who: Dublin-based mineral exploration firm Arkle has raised funds after an offering of 75m new shares at £0.8 pence each. The company is headed by whisky and mining entrepreneur John Teeling.

What: £600k (c.€660k) was raised from the share issuance. This offering has boosted Arkle’s total issuance by c. 25% to 291m, which includes warrants exercisable at £1.2p each.

Why:  This will fund the company’s sampling and drilling campaign in a quest for gold in Donegal & Wicklow. In addition, the fund will be directed at the 2021 drilling programmes for zinc in Limerick at the Stone park joint venture and in surrounding areas.

Source:  Irish Independent

Who: Diamond exploration company Karelian Diamond Resources has secured funding through a share placing programme.

What: £420k (c.€464k) raised from the share issuance. Brandon Hill Capital Ltd. acted as the company’s broker.

Why:  The funds acquired from this will be used for further exploration and technical assessment of its Lahtojoki acreage in the Kuhmo region in Finland.

Source:  The Irish Times

Who: Dublin-based virtual reality (VR) remote training company VRAI has secured seed funding. The company co-founded by Niall Campion and Pat O’Connor has developed a cutting-edge VR focused training platform used by customers including the Irish Defence Forces, United Nations, and Jameson to name a few.

What: €1.2m was raised in a seed funding round led by angel investors and Enterprise Ireland.

Why:  VRAI intends to deploy these funds into the development of their technology and to increase headcount. The company currently employs 12 people.

Source:  The Irish Times

Who: Med24, a London-based healthcare start-up co-founded by an Irishman, has secured funding. Med24 intends to launch Britain’s first membership-based private healthcare service.

What: The company raised a seed funding round of £5m (€5.56m) from a group of high-net worth investors including Dermot Desmond as well as a number of senior figures at several private equity houses.

Why: It has not been disclosed what the funds will be used for but it is believed that the £5m will be used to help accelerate the growth of the business amid the Covid pandemic as well as support its first clinic which was recently opened, a 7,000 sq. ft facility near Paddington in London.

Source: Sunday Business Post

EXECUTIVE AND BOARD APPOINTMENTS

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.

Francisco Crespo

Source: (Google Images & LinkedIn)


Mike Mulrenan

Source: (Google Images &
LinkedIn)

THOUGHT FOR THE WEEK

So we can:

  • Go to Mass but not meetings
  • Play football but not watch it
  • Eat in pubs but not have Sunday lunch with parents and siblings
  • Attend a wedding with strangers but not have a BBQ with neighbours
  • Send the kids to school but not go to work

#Covid-19

Credit to Kevin Doyle (Group Head of News at Independent News & Media) who posted the above during the week after the government’s latest announcement.

@RenatusCapital Tweets

9,853

The number of new company start-ups in H1 2020, the lowest number on record since H1 of 2015 when 8,981 companies were set up. According to CRIF Vision-net. @RTEbusiness

0.7%

The y-o-y decline of Dublin residential property prices in June 2020, with house prices decreasing by 0.9% and apartments increasing by 2.4%. According to @CSOIreland

0.9%

The y-o-y increase of residential property prices excluding Dublin in June 2020, with house prices up by 1.2% and apartments down by 1.3%. According to @CSOIreland

3.8%

The y-o-y decline of air freight handled by Irish airports in Q2 2020, meaning over 32,500 tonnes of goods passed through Irish airports during this period amid strong pharma exports and PPE imports. According to @CSOIreland

0.4%

The y-o-y rise in Euro Area inflation as of July 2020, meanwhile Ireland was -0.6%, according to @EU_Eurostat

22%

The y-o-y decline in the number of homes for sale nationwide as of August 1st 2020, with just 19,538 properties available, a 14-year low. According to @daftmedia . @IrishTimesBiz

ABOUT RENATUS

Renatus was established in 2014 by Mark Flood and Brendan Traynor 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 of €5m and above. Our typical solutions include:
  • Succession Planning
  • Management Buyouts / Buy-Ins
  • Funding for organic growth
  • Acquisition Funding; and
  • Share Sales
Management Partners
Business Owners

OUR INVESTMENTS

LEARN MORE…

Renatus’ Knowledge Centre

Our Knowledge Centre is filled with insights from some of Ireland’s top business leaders on Succession Planning, Management Buyouts / Buy-Ins, Growth Financing and much more.

Visit the Knowledge Centre

Receive this Newsletter Direct to your Inbox

To receive Renatus’ Weekly M&A Newsletter directly to your inbox, click the button below and subscribe to the newsletter.

 

Subscribe to our Newsletter
Share

Ground Floor,    Harmony Court,
Dublin 2,                          D02 RH68

T: +353 | 1 5549269
E: info@renatus.ie

Business Owners
Management Partners
Team
Portfolio
Newsletter
Podcast
Knowledge Centre
Contact

© 2023 Copyright
Renatus Capital Partners.

All Rights Reserved

Privacy Policy

    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.