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 – 17/11/2019
November 17, 2019
Renatus’ Weekly M&A Newsletter – 01/12/2019
December 1, 2019
November 24, 2019

Uniphar acquires EPS group and M3 Medical, Sage Pay is acquired by Elavon, Turk's Head and Paramount Hotel for sale. Louth-based ocean data firm Xocean secures funding and much more in this week's Renatus M&A 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

Uniphar acquires EPS group and M3 Medical

Deal Details: Ireland’s biggest pharmaceutical wholesaler and distributor Uniphar acquires EPS Group and Irish-based M3 Medical.
The total potential cost of the two acquisitions is €40m over four years, with the deferred consideration linked to the earnings performance of the businesses over the four year period.

Both EPS Group and M3 Medical deliver sales, marketing and distribution services to medical device manufacturers in the areas of interventional cardiology and vascular medicine.
The EPS Group comprises EPS Vascular AB and EP Endovascular AB, both registered in Sweden, and EPS Vascular OY registered in Finland, delivering these services services across Sweden, Denmark, Norway, Finland, Iceland and the Baltics.

On a proforma basis for the full year ending 31 December 2019 the acquisitions in aggregate are expected to deliver revenues of c. €22m.
The acquisitions were financed out of the proceeds of the placing completed alongside the listing of the Group’s shares on 17 July 2019.

Advisers: Capnua Corporate Finance advised Uniphar on the acquisitions. William Fry Solictors were the legal advisers on the M3 Medical acquisition.

Renatus Comment: Uniphar occupies, and in many cases dominates, most elements of the Irish Pharma and MedTech value chain from pre-wholesale to retail. Their ambition is to replicate this in Europe and eventually become the continent’s leading independent distributor of medical devices. Ger Rabbette and his team have been highly acquisitive and have a track record of delivering growth on the back of them. We expect to be reporting on more of these types of deals in the near future as Uniphar pushes for European dominance.  The share price @ 1.24 is trading marginally ahead of its IPO price of 1.18

Source: Uniphar Press Release

Sage Pay is acquired by Elavon

Deal Details: Sage Group sells its payment division to US firm Elavon for €270m.

Elavon is a global merchant acquirer and subsidiary of U.S. Bank (NYSE: USB). Elavon employs more than 4,300 employees and has operations in 10 countries.

Sage Pay, a division of The Sage Group plc (SGE), is a well-known and established payments gateway business in the United Kingdom and Ireland.

Advisers: Rothschild & Co served as lead financial advisor and Allen & Overy as legal advisor, along with Morgan Stanley and Citigroup Global Markets as financial and corporate broking advisors to Sage.

Renatus Comment: Sage is the second largest listed software company in the UK with over three million customers in 23 countries and employing over 13,000 people. The company reported a 7.64% increase revenue of c. £1.85bn in FY18 with EBITDA up 21.92% to c. £495m.

Source: Elavon Press Release

Deals in the Making

Turk’s Head and Paramount Hotel for sale

The Paramount Hotel and its well-known bar, the Turk’s Head on Parliament Street in the heart of Temple Bar, have been put on the market for a guide price of €25m.
The 66 bedroom hotel has the potential to increase to 130 bedrooms. It has been brought to the market by agent CBRE.

Source: Irish Times

Breedon to build on Irish growth

British construction materials group Breedon is pursuing a number of Irish bolt-on acquisitions.
Breedon trades under the Lagan name in Ireland and in the North as Whitemountain after entering Ireland in 2018 through the €500m takeover of housebuilding and aggregates business the Lagan Group.

Source: Irish Examiner

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.

MJ Flood Group Limited, which trades as MJ Flood, is a Dublin based company that was established in 1935. The company is the largest indigenous supplier of photocopiers, digital technology, office furniture and interiors for the modern office environment. In FY18, the company saw revenue decrease slightly by 1.6% to c. €81.7m although EBITDA increased by 5.4% to c. €13.3m. The company employed an average of 244 people at a cost of c. €16.5m during the year.  The company purchased c. €5.7m of tangible fixed assets during the year, with the majority relating to new office equipment, and made a loan repayment of c. €480k leaving net cash on the balance sheet at c. €21.7m against a debt balance of c. €4.3m. Net assets stood at c. €56.7m at the end of FY18, up from c. €51.0m the previous year. The company is 100% owned by the Power family, with Michael Power Jnr and John Power the majority shareholders.

With nearly 40 years’ experience in the access business, Height for Hire is one of Ireland’s most prominent hire companies. The business now has 20 locations across 4 different countries: Ireland, the UK, Hungary and Slovakia. For FY March 2019, revenues for the group were effectively flat at c. €26.9m while EBITDA decreased slightly by 1.4% to stand at c. €7.7m. EBITDA converted to c. €1.2m of a net cash increase after c. €12.2m was spent on new fixed assets, offset by c. €5.9m of proceeds from finance lease payments. Height for Hire is owned by McArdle family members which includes Fergus, Cabrini, Henry, Lorraine and Frances among others.

Catering Disposables was established in 2003 and is a leading supplier of disposable products to the Catering & Retail industry. In a good year for the business, turnover rose by 3.8% to c. €14.3m while EBITDA increased by 26.7% to c. €1.6m as gross margins increased from 26.2% to 28.2%. The Dublin-based company employed an average of 31 people during the year at a cost of c. €1.4m. There was a net cash increase of c. €727k after c. €477k and €132k was spent on repayment of loans and puchases of fixed assets respectively. The business is owned by Dowling family members James, Sharon and Ursula.

RECENT FUNDRAISINGS

Who: Waterford online waste marketplace provider Kollect seeks to raise funds from the initial public offering (IPO).

What: The company is hoping to raise more than €1m on the Nasdaq First North market in Stockholm on December 19. Kollect will use the ticker symbol KOLL. The subscription period will run from November 25 to December 10.
Kollect has been advised by Mangold FondKommission AB and Eversheds Sutherland in Stockholm and by Fóla Partners, Kiely Solicitors and Mazars in Ireland.

Why: The purpose of the fundraise hasn’t been specified, however it is understood the funding will be used towards expansion as Kollect plans to branch out to 75 cities across Britain.

Source: Irish Independent

Who: Louth-based ocean data firm Xocean, founded by James Ives in 2017, has secured funding. The company provides turnkey data collection services to surveyors, companies and agencies. Using Unmanned Surface Vessels (USVs), Xocean collects ocean data, from mapping the seabed to environmental monitoring.

What: The provider(s) of the €7.9m investment were not disclosed.

Why: The purpose of this funding is to support its plans for international expansion. Xocean also plans to build an additional 22 USVs over the next 12 months and hopes to recruit an additional 140 employees to service the market demand.

Source: Silicon Republic

Who: Galway-headquartered Bio-Medical Research Limited (BMR) has secured a financing.

What: €7.5m finance package has been provided by an SME private debt fund lender Beechbrook Capital. BMR was advised by DC Corporate Finance and Maples Solicitors. Beechbrook Capital was advised by Ronan Daly Jermyn Solicitors and Gilroy Gannon Chartered Accountants.

Why: The investment will support BMR to broaden and deepen its market-leading product suite which includes the well-known Slendertone and Flex Belt range.

Source: privateequitywire

Who: Irish Life Investment Managers (Irish Life), along with California-based financial services company Research Affiliates, is to launch a new environmentally sustainable, socially responsible fund.

What: The fund will have $100m (€90.6m) in initial funding. It is the first to be launched here based on Research Affiliate’s ESG (environmental, social and governance) indices.

Why: The Irish Life RAFI ESG Developed Equity Fund offers investors the opportunity to make socially responsible investments along with the potential for long-term market outperformance.

Source: Irish Times

Who: Yew Grove REIT plc, an Ireland-focused Real Estate Investment Trust, is looking to raise funds.

What: The company is aiming to raise €19.4m from a share issue.

Why: The money will be used to fund its pipeline of acquisitions.

Source: Irish Independent

Who: Dublin-based company Storyful, which uses social media feeds, user-generated content and proprietary technology to frame news reporting, has received further funding.

What: €4m cash injection comes from Rupert Murdoch’s News Corp bringing the total amount provided by its parent to nearly €40m since it was acquired in 2013.

Why: The funds are to support the loss-making company.

Source: Irish Times

Who: Castlewellan guesthouse Hillyard House has secured investment.

What: Over £3m (€3.49m) comes from a Co Down retail company Fresh Food Centres, Economic development agency Invest NI has also offered the business £300,000 (€349,000).

Why: The funds will be used for the redevelopment of the old guesthouse to include 20 ensuite bedrooms, a 90-seater restaurant and a bar, creating 37 jobs, and expects to open in February 2020

Source: Belfast Telegraph

Who: Northern Ireland funeral firm Norman McBriar & Son funeral directors in Saintfield has received investment.

What: £500,000 (€581,000) investment was supported by Ulster Bank.

Why: The funds were used to relocate the business to larger premises with better facilities to support growth.

Source: Belfast Telegraph

Who: Kerry Co-op Society is selling 800,000 of shares in Kerry Group.

What: The sales will raise about €90m based on a reported stock price of €112.50 per share, a 2.5% discount to the stock’s Tuesday close.

Why: The purpose of a fundraise was not specified.

Source: Irish Independent

Who: Greencoat Renewables is looking to raise funds. The company acquired Killala community wind farm in Co. Mayo earlier this week for €37.2m bringing its portfolio in Ireland up to 13 wind farms with a combined capacity of c. 450MW.

What: Targeted €100m is to be raised in a share issue programme. Up to 350 million new shares in the capital of the company will be issued in a number of tranches over a 12 month period. Greencoat intends to issue approximately 88 million placing shares at a price of €1.13 per placing share in the first tranche of the programme.

Why: The funds will be used to finance further merger and acquisitions opportunities.

Source: Irish Independent

Brexit movement in the Week

Instead of ‘Thought for the Week’, we are bringing you a weekly tracker using odds from oddschecker and taking off bookmakers margin to come up with deemed percentage probability of outcomes.

There has been no movement in the past week in the probability of when some sort of Brexit occurs:
By 31 December 2019 4.5%
H1 2020 64% (49% Q1 +15% Q2)
H2 2020/2021 14%
Not before 2022 17%
——————————————————————————————.

With regard to the outcome of the General Election the markets are guiding a 68% (9 to 4 on) chance of a majority Conservative government.

If you are not in agreement with any of above you can get the odds here and back your opinion: Oddschecker – Brexit

@RenatusCapital Tweets

2.4%

The year-on-year increase in the employment in Ireland for Q3 2019 bringing the number of employed people to 2,326,900 people bringing the unemployment rate down to 4.9%, according to @CSOIreland

7% & -20%

The year-on-year change in the value of Irish exports and imports, respectively, for September 2019 representing an increase of €829m for the exports and a drop of €1,644m for the imports when compared to September 2018, according to @CSOIreland

3.2%

The year-on-year increase in the spend in Irish supermarkets for the first 10 months of 2019, amounting to €11.2b spent so far this year, according to Kantar research. @irishexaminer

2.4%

The year-on-year increase in the average salary in Northern Ireland for 2019, rising faster than the UK average increase of 1.8%, according to research from Hays.

25%

The average share of Irish homeowners’ after-tax income spent on mortgage repayments in 2019, compared to 40% in 2008, according to a new study published by the Central Bank. @IrishTimes

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.