2019
March 29th, 2019
Specialist Orthopaedic & Sports Medicine Hospital To Focus on Continued Growth of Patient Services and Facilities
Dublin, Ireland – Carlyle Cardinal Ireland (CCI), the private equity fund established by The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group, has agreed to an investment in Sports Surgery Clinic (SSC), a private hospital specialising in orthopaedic surgery, spinal surgery and sports medicine. The investment, terms of which are not being disclosed, is expected to complete in the coming months.
SSC, located in Santry, Dublin, is a state-of-the-art private hospital dedicated to orthopaedics and sports medicines. Launched in 2007, SSC introduced world-class facilities and treatment into Ireland for orthopaedic joint-replacement surgery, spinal surgery and sports medicine. The hospital has quickly grown to become a premier provider of both sports medicine and orthopaedic joint-replacement surgery in Ireland with a reputation for leading-edge innovation and highest standards of patient care.
Facilities at SSC include five ultra-clean-air operating theatres dedicated to orthopaedic and spinal surgical procedures, a diagnostic-imaging service including two 3-Tesla MRI scanners and a 64-slice CT scanner, and an expansive physiotherapy and rehabilitation department incorporating wellness and health-screening facilities. A recently developed sports medicine-dedicated laboratory provides performance rehabilitation, running clinics, fitness testing and physiotherapy services. Currently employing over 300 people, SSC’s capacity comprises 63 in-patient beds, 26 day-care beds and 21 on-site consultancy suites.
Jonathan Cosgrave, Managing Director, The Carlyle Group and John Dolan, Managing Director, Cardinal Capital Group, will join the board of directors of SSC upon completion of the investment.
Dr. Josh Keaveny, Chief Executive, SSC said: “With our patient-focused model of care we are continuously exploring the science and medicine related to sports injuries, athletic performance, joint replacement and spinal injury. We aim to keep people of all ages fit and active. The investment from CCI allows us to accelerate our growth and we plan to begin work in the near future on expanding the hospital. This expansion will significantly increase our capacity which will enable us to treat more patients.”
John Dolan, Managing Director, Cardinal Capital Group, said: “CCI’s financial backing of SSC’s expansion plan will add two additional theatres, which will increase surgical capacity by 40%, meaning more of the population can readily access the hospital’s leading facilities and consultants. With an increased focus on exercise and wellness, more and more people are looking for restorative procedures, particularly knee and hip replacements, and shoulder surgery. SSC’s specialist orthopaedic and rehabilitation expertise has allowed it establish a national reputation for treating injuries in both professional and amateur athletes, and members of the wider population.”
Jonathan Cosgrave, Managing Director, The Carlyle Group, said: “SSC is CCI’s second healthcare sector investment and we are excited to be partnering with such a high quality, ambitious management team and group of staff. Planned increases to SSC’s operating capacity will expand SSC’s workforce and we look forward to adding new consultants, nurses and other healthcare professionals to the SSC team. The Irish population aged over 65 years is forecast to increase 45% by 2030 driving a significant increase in annual demand for hip and knee joint replacements, and SSC’s management team and staff are well positioned to service this growing patient demand.”
CCI has been an active growth investor in the Irish market since 2014. SSC is the fund’s tenth investment and the fund continues to explore other investment opportunities. Current fund investments include The AA Ireland, Payzone, Carroll Cuisine, Learning Pool, McCauley Pharmacy Group, Abtran and Millicent Pharma. CCI previously invested in Lily O’Brien’s and General Secure Logistics Services (GSLS), both high-growth companies run by first-class management teams, each of which underwent an exit process in 2018.
CCI’s investment in SSC is subject to approval from the Competition and Consumer Protection Commission (CCPC).
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Press Contacts:
The Carlyle Group
Laurie Mannix, MKC Communications
Tel: +353 (0)1 703 8620 Mob: +353 (0)86 814 3710 laurie@mkc.ie
Cardinal Capital Group
Tom McEnaney, McEnaney Media
Tel: +353 (0)87 2222 666 tom@tommcenaney.com
About Sports Surgery Clinic (SSC)
SSC’s goal is dedicated to delivering the highest standards of diagnosis, prehabilitation, treatment, rehabilitation and full recovery care for its patients. The hospital aims to provide an exceptional working environment for staff with a focus on continuous education and quality improvement to support excellence in patient care.
SSC’s facilities are built with optimised patient outcomes in mind. They include five ultra clean-air operating theatres, a world-class diagnostic imaging department, an expansive physiotherapy department, a wellness and health screening facility, as well as dedicated research laboratories which highlight the commitment that SSC places on promoting future breakthroughs in orthopaedic surgery.
SSC offers patients all the advantages of the newest technologies, including 21 on-site consulting rooms that ensure rapid and smooth access to consultant expertise on a continuous basis. The hospital houses some of the world’s most advanced radiology equipment including two 3-Tesla MRI scanners and a 64-slice CT scanner, both of which yield superior image quality and resolution, particularly in the diagnosis of soft tissue and orthopaedic injuries.
Patient comfort is at the heart of the service provided by the SSC. In total, the clinic offers 63 in-patient beds in addition to 26 day-care beds. Each patient room has its own ensuite bathroom with shower, and entertainment centre incorporating internet, radio and telephone access along with both clinic and treatment information.
About Carlyle Cardinal Ireland
Carlyle Cardinal Ireland is a joint venture between The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group. The €292 million private equity fund is focused on growth capital and buyout investment opportunities across the island of Ireland.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $216 billion of assets under management as of December 31, 2018, Carlyle’s purpose is to invest wisely and create value on behalf of our investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,650 people in 31 offices across six continents.
The Carlyle Group is a seasoned investor in the hospital sector. Notable hospital investments include Schoen Klinik (Germany – 17 hospitals), Rede D’Or São Luiz (Brazil – 38 hospitals), Healthscope (Australia – 45 hospitals), Medical Park (Turkey – 18 hospitals) and Medanta (India – 3 hospitals, 1 Day Care Facility and 2 new hospitals under construction).
Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market-commentary
About Cardinal Capital Group
Cardinal Capital Group is Ireland’s leading provider of alternative capital, directing private-equity capital, mezzanine finance and alternative lending to a broad range of sectors in the Irish market. Cardinal invests its own capital alongside institutional funders to support entrepreneurs and corporate management teams as well as real-estate investors and developers.
Web: www.cardinalcapitalgroup.com
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April 18th, 2019
New owners to build on growth achieved under CCI
Ireland – Carlyle Cardinal Ireland has announced that Payzone, one of Ireland’s largest providers of payment solutions, is to be acquired by a newly-formed joint venture established by AIB Group plc (AIB) and First Data Corporation. The joint venture will acquire a majority stake in Payzone from existing shareholders, including Carlyle Cardinal Ireland Fund (CCI), for an enterprise value of up to €100 million.
CCI, the private equity fund established by The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group, acquired a majority shareholding in Payzone in March 2015 and the company has grown strongly during the four years of CCI ownership. CCI worked closely with the management team to diversify the business and develop the company into a multichannel payments provider, employing 90 people.
Today Payzone’s technology solutions allow both large and small Irish businesses to accept payments in store, on the road, over the phone, and through a website or app. The company processes 125 million transactions annually for 100+ client companies and operates Ireland’s largest retail payments network with 11,500+ points of sale throughout the country.
The change in ownership will have no impact on the day-to-day business operations of Payzone in Ireland. The senior management team, including Jim Deignan, CEO and Nigel Bell, CFO, will remain in their roles.
Jim Deignan, Chief Executive, Payzone Ireland, said: “This development is a positive step for Payzone and a vote of confidence in the future of the business. We see significant opportunity to grow our footprint in the fintech sector and this can only be enhanced further with the backing and support of our new shareholders, who bring deep industry expertise to make things happen. The team at Carlyle Cardinal Ireland, which originally invested in Payzone in 2015, has worked very successfully with us to help develop the business and to support our continued growth. We thank them for their great support and investment over that period.”
Peter Garvey, Managing Director, The Carlyle Group, said: “Working with the fantastic management team at Payzone, CCI’s investment in innovation and new product development has helped to accelerate the growth of the business and to transform it into one of Ireland’s most successful multi-channel payment solutions platforms. Net revenue and EBITDA have grown by 40% and 70% respectively, since we invested. Payzone still has numerous opportunities for further growth, which can now be realised with the support of the new investors. This is the fund’s third exit and once again demonstrates the benefits of active, growth-focused private equity investment for ambitious Irish businesses.”
Daragh Lane, Cardinal Capital Group said: “At CCI we believe in helping management teams grow the companies we invest in. When CCI acquired a majority shareholding in Payzone four years ago it processed 61 million transactions a year, delivering a gross transaction value of €1 billion to its customers. Today it processes 125 million transactions a year delivering in excess of €2 billion of value to its customers and is a well-established Irish fintech organisation that drives significant innovations across many traditionally cash-based markets.”
CCI representatives Peter Garvey and Robert Easton of The Carlyle Group and Daragh Lane of Cardinal Capital Group will step down from the Payzone Board on completion of the transaction, which is subject to approval from the European and Irish competition authorities.
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Press Contacts:
Cardinal Capital Group
Tom McEnaney, McEnaney Media
Tel: +353 87 2222 666 tom@tommcenaney.com
The Carlyle Group
Laurie Mannix, MKC Communications
Tel. +353 1 703 8620 Mob: 086 814 3710 laurie@mkc.ie
Payzone
Frans van Cauwelaert, WHPR
Tel: +353 87 947 6743 frans.vancauwelaert@ogilvy.com
About Payzone
In Ireland, Payzone is the largest consumer payments network in the country with over 7,500 retail agents which process a variety of electronic transaction services, including mobile phone top ups, debit/credit card transactions; M50 motorway toll payments; Leap travel cards, local property tax payments, parking fees, schools and clubs payment platform, pre-paid utility and parcel collection services.
The company employs over 90 people based in its Sandyford head office in Dublin.
Payzone’s focus is on delivering leading edge payment services that drive greater efficiency for clients and increased revenues for its retail partners.
As industry leader, Payzone’s technology credentials, capabilities and expertise are a particular strength of the business.
Visit www.payzone.ie
About Carlyle Cardinal Ireland
Carlyle Cardinal Ireland is a joint venture between The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group. The €292 million private equity fund is focused on growth capital and buyout investment opportunities across the island of Ireland.
About Cardinal Capital Group
Cardinal Capital Group is Ireland’s leading provider of alternative capital, directing private-equity capital, mezzanine finance and alternative lending to a broad range of sectors in the Irish market. Cardinal invests its own capital alongside institutional funders to support entrepreneurs and corporate management teams as well as real-estate investors and developers.
Web: www.cardinalcapitalgroup.com
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with $216 billion of assets under management across 343 investment vehicles as of December 31, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,650 people in 31 offices across six continents
Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market- commentary
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April 26th, 2019
Success is sweet for pioneer of Irish fund
Private equity had a bad press until Peter Garvey returned home, writes Paul O’Donoghue.
Until recently, when an Irish business needed some cash, it would normally turn to the banks. Peter Garvey wanted to change that. The Dubliner spent over a decade working around the globe, in senior roles at companies such as McKinsey & Co and Goldman Sachs, building up his experience in the world of private equity.
While Mr Garvey and his wife were happy in London, by the time their second child was born, they felt that it was time to return to Ireland. At about this time, in 2013, Mr Garvey was approached by a headhunter who wanted him to set up a significant new fund to invest in indigenous Irish companies.
Mr Garvey, now 43, was eager to return home for family reasons. But he also felt that going back to Ireland to help start the fund would give him the opportunity to kick-start something greater — private equity funding in Ireland, which at the time was at a nascent stage. “It was a great opportunity to come back and to lead a fund which was at the forefront of building a private equity industry in Ireland,” he says. “In other countries, there was a much greater mix of different types of funding. I think the government felt at the time that there was a gap in the market and we needed to develop an alternative source of capital, other than banks. “It was very exciting for me to be able to come back, with a ready-made fund, and to help build the industry here.” Mr Garvey was appointed a managing director of the Carlyle Group, a Washington-based private equity group, and the co-head of its Ireland fund, Carlyle Cardinal Ireland (CCI). The fund, a €292 million joint venture between the Carlyle Group and the Cardinal Capital Group, an Irish investment firm, has gone on to become one of the most prominent investors in Ireland. The company looks to invest between €5 million and €50 million in medium or large Irish companies which have a strong core business and good growth potential. Among its high-profile deals are its 2014 investment in Lily O’Brien’s, a chocolate-maker in Kildare, for a reported €15 million, which was then sold for €40 million in 2017. The fund took a majority stake in the Sam McCauley Chemists pharmacy chain in a reported €50 million deal, and snapped up AA Ireland in 2016. Mr Garvey says that many of these deals have helped the fund in subsequent years, as they helped to prove the case for private equity and soothe the nerves of Irish business owners who were unused to this type of funding. He repeatedly points to the investment in, and subsequent sale of, Lily O’Brien’s as being pivotal in helping distinguish CCI from other types of investors, such as so-called vulture funds. “Five years ago a lot of what we did was trying to educate the market on what corporate private equity was,” he says. “It was difficult at the beginning, and we were fortunate that our first deal was Lily O’Brien’s. “We have a great supporter there in Mary-Anne O’Brien, who is well-known as a former senator. It was a great brand that people knew well, and a really great success story. I think getting that done really broke down some of the barriers to doing deals.” While Mr Garvey says that an obvious point of difference from vulture funds is that many of these funds invest in property, a common view is that they buy up an asset to quickly flip and make a profit. This is linked to an image of asset stripping that some people have of private equity firms, where they would take over a company, quickly sell off anything of value, and then leave once the maximum amount of cash has been extracted from the business. Mr Garvey says that CCI takes a longer-term view, investing in companies and working alongside management to build up the business. He says that the fund normally holds assets for about five years, with the aim of selling them on when their core business has expanded well and CCI can make a decent return. He points to Payzone as an example of this philosophy. When CCI bought Payzone in 2015 for a reported €39 million, the Dublin-based fintech company mainly made its revenue from mobile phone top-ups through a network of retailers across Ireland. Since CCI has invested, Payzone has diversified and now handles a variety of online payments including Leap card top-ups, M50 motorway tolls, parking fees and utility bills. While Payzone’s sales have dropped from €171 million in 2014 to €149 million in 2017, over the same period its earnings have surged from €3.3 million to just over €6 million. Last week it was announced that CCI has agreed to sell Payzone to a joint venture between AIB and the American firm First Data Corporation in a €100 million deal. This included a cash payment of €61 million, which would have helped to give CCI a healthy return on its initial investment. “We backed them, very significantly, with capital to diversify from a legacy mobile phone top-up business. They had already started doing that, but to really accelerate that growth into a well-developed payments and fintech business,” Mr Garvey says. “The growth of that business has been phenomenal. When we invested, it was doing 61 million transactions in a year, now it’s doing 125 million and earnings grew 70 per cent in the four years that we were there. “We build a plan with the management team, and that is how we generate a return.” CCI also encourages the owners of the businesses it invests in to spread some shares around at management level. As well as ensuring that everyone has some skin in the game and is pulling in the same direction, Mr Garvey says that it can also help some entrepreneurs who have spent years building up their business to take risks again. “Six of our ten deals have been founder-owner deals, and we often let them take some money off the table. In my experience founder-owners, when they have all their eggs in one basket, run their business in a particular way. “Because if it goes wrong, they lose everything. But when they take some money off the table, they look at their business in a completely different way and their appetite to grow and invest is massively different.” While people tend to think of a few industries with high-growth potential when private equity is mentioned, such as tech and health firms, Mr Garvey says that CCI invests in a range of industries. With the small size of the Irish market, the fund cannot afford to be choosey when it comes to sectors, which has resulted in it going into a diverse range of businesses from tech to food. CCI has now invested in ten companies since it was launched in 2014. Mr Garvey says that the firm plans to perhaps make two more investments by the end of the year before the fund switches focus. “We will likely do one to two more investments out of this fund, and then we will switch gears to adding value and to exiting the portfolio over a period of time. We will finish investing this fund at the end of the year,” he says. “We’re in exclusivity on one transaction and there are lots of other things in our pipeline. Private equity funds are generally about ten to 12 years in length. You spend half that time in your investment period, and then about half in the divestment phase.” While focused on guiding CCI through its divestment phase, Mr Garvey is keeping one eye on the future. “I’m a very big investor in this fund, I’m a fiduciary for my investors, I need to make sure this is a success, 110 per cent of my time is focused on that,” he says. “I would love to continue to invest in Ireland for decades to come, think there is a great opportunity, but all I’m focused on is fund one, because unless you have a good track record, there’s no point in thinking about anything else. “I do believe that private equity has a place in the Irish funding landscape, and I do think there will be lots of opportunities going forward. We’re probably still 15 years behind the UK — we’re only starting this journey.” # # #
May 4th, 2019
Peter Garvey is a Managing Director at The Carlyle Group and Co-head of Carlyle’s Ireland Fund. Mr. Garvey is based in Dublin and focuses on growth capital and buyout investment opportunities in the Irish market. Mr. Garvey is a member of the board of directors of the holding companies of The AA Ireland, Payzone Ireland, Abtran, and GSLS. Peter joined Bobby in studio this morning.
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May 27th, 2019
CCI raised €292m in 2013 and is the biggest buyout fund focused solely on Ireland. It has done 10 acquisitions in the country and is close to sealing one more.
Carlyle Cardinal Ireland’s (CCI) sale last month of Payzone Ireland for more than four times its original investment serves as a good example of the firm’s strategy in the country, according to one of the fund’s co-heads.
CCI raised €292m in 2013 and is the biggest buyout fund focused solely on Ireland. It has done 10 acquisitions in the country and is close to sealing one more. Payzone is the fund’s third and largest exit to date.
Payzone is the leading consumer payments network in Ireland. CCI bought it in April 2015 for €39m. It had a partial payout in 2016 after arranging a debt financing deal with Ulster Bank. In April, it sold the business to Allied Irish Bank and First Data for €100m.
CCI exited its investments in chocolatier Lily O’Brien, for €40m, and cash-in-transit company General Secure Logistics Services (GSLS), for an undisclosed sum, in 2017 and 2018, respectively.
“From a standing start, we have done 10 deals in Ireland, soon to be 11, over the last five years. So we are thrilled with the availability and quality of companies in the Irish market,” says Peter Garvey, co-head of CCI. “We are seeing very strong deal flow this year and believe that we are only at the tip of the iceberg in terms of PE activity and penetration levels in Ireland.”
Humble beginnings
Ireland’s private equity industry has developed quickly – from humble beginnings – since the financial crisis. In 2013 the value of first-time acquisitions was just €563m, according to data provider Dealogic. The following year the value of first-time acquisitions by private equity firms rose to $2.5bn. Year-to-date, this figure is $1.2bn.
Garvey says he has seen “dozens of smaller private equity deals” in Ireland over the past five years. He expects the firms to start selling these portfolio companies over the next five years, which he believes will create an active secondary market.
To make a successful investment in Ireland, local knowledge is key, according to Garvey.
CCI’s Payzone Ireland acquisition is a case in point, he says. The Payzone group as a whole had suffered several years of weakening performance. In 2009, it recorded a loss of €203.8m. The following year, London-based Duke Street bought a majority stake as part of a restructuring of the company.
Garvey says the group had “a chequered history” before Duke Street’s acquisition in 2010, but that the Irish unit had a “great brand” and “had performed really well”.
“You wouldn’t have known that if you weren’t locally based in the Irish market,” he adds. “This is a situation where you had an asset that was probably misunderstood internationally. People thought of it as a legacy mobile top-up business but management had done a good job transitioning it. We saw a hidden gem with a real opportunity for transformational growth.”
The Payzone deal taught the CCI team the value of great management teams and the importance of spending time to get to know a business well in advance. When finding a buyer, it is also crucial to take the time to find the right fit. In addition, the team learned that to create an attractive asset, it needs to be ready to significantly invest in the business after the acquisition.
Following the acquisition of Payzone, CCI and the company’s management set to work on growing the firm’s services and improving its infrastructure.
The company invested in a new enterprise resource planning system and expanding its product range. For example, it added two additional payment options to its Parking Tag application, which allows users to pay for parking using their phones.
Expand operations
Payzone also acquired EasyPayments Plus and MyEasy Pay in 2017, for an undisclosed amount, expanding the firm’s operations into schools, clubs and small businesses. EasyPayments Plus was processing €40m worth of transactions annually at the time of the acquisition, according to the press release, with more than 140,000 registered customers.
Payzone Ireland now has more than 11,500 points of sale and processes more than 125 million transactions worth €2.5bn annually, up from 61 million transactions and €1bn in 2015. Among its more than 100 client companies are Vodafone, Virgin Media, Three and Electric Ireland.
When CCI bought the company it had earnings before interest, tax, depreciation and amortisation of €6m, which rose to €8.3m in the year to September 2018. Headcount has also increased from 70 to approximately 90 employees.
Garvey added that getting the bank financing for the deal was also difficult. However, CCI’s local relationship with Ulster Bank drove it “over the line”. CCI has made a point of not putting a lot of leverage on the company from the start.
With AA Ireland, CCI took a similar approach. The firm carved-out the Irish arm of the motoring business AA in June 2016 for €156.6m. It then rolled out a new IT infrastructure and increased staff headcount by 11% to 506. The business also launched roadside battery charging for electric cars.
Following the sale of Payzone, there are now six assets remaining. The fund continues to eye new deals.
Garvey said: “We are meeting founders every week that need help in growing their companies and also larger corporates that need a reliable counterparty to sell non-core Irish assets to.”
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May 30th, 2019
Investment Will Support Company’s Expansion as Demand for Professional Waste Management Services Continues to Grow
Dublin, Ireland – Carlyle Cardinal Ireland (CCI), the private equity fund established by The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group, has agreed to make an investment in The City Bin Co., an award winning waste management company. The investment, terms of which are not being disclosed, is expected to be completed in the coming months.
The City Bin Co. was co-founded by Gene Browne in 1997 to bring a customer-centric approach to the waste management industry. Today the company is a leading provider of waste management services in both Dublin and Galway City, serving in excess of 80,000 household and commercial customers. Unlike traditional waste operators, The City Bin Co. solely focuses on source segregated waste collection from residential households and commercial businesses. The company’s core strategic focus is customer service and The City Bin Co.’s investment in people and its reputation for service excellence are renowned. The relentless pursuit of customer service excellence has delivered industry-leading customer retention rates and exceptional customer satisfaction as measured by Net Promoter Score (NPS). Approximately 150 people are employed by the company across its operations.
Gene Browne will remain as CEO of the company and the existing management team, including Niall Killilea, Managing Director and Louise Niemann, Chief Financial Officer, will continue to lead the company. Ian Daly, Director, Cardinal Capital Group, Esmond Greene, Director, The Carlyle Group, and Jonathan Cosgrave, Managing Director, The Carlyle Group will join the board of directors of The City Bin Co. upon completion of the investment.
Gene Browne, CEO, The City Bin Co., said: “The City Bin Co. has grown consistently in a very competitive market through our customer focused business model. This approach has served us very well and truly differentiated the company. We’re delighted to partner with a fund of the pedigree, experience and resources of CCI as we prepare for our next stage of growth. Our focus will remain on setting the standard for customer service across the waste management industry and delivering exceptional value for money to our business and household clients”.
Esmond Greene, Director, The Carlyle Group, said: “The City Bin Co. investment is CCI’s eleventh in the Irish market and we are delighted to partner with a business which has an unrivalled reputation for customer service, strong brand recognition and an experienced management team that has overseen a doubling in size of the business over the past 5 years. The fragmented waste management services market provides a significant opportunity to service growing household and business demand for professional waste management services through continued investment and via acquisitions, and we look forward to supporting the company’s continued expansion and to growing the 80,000+ customer base.”
Ian Daly, Director, Cardinal Capital Group, said: “Managing waste is a critical part of any household or commercial customer’s budget and The City Bin Co.’s service and technology proposition enables it to employ the most effective and sustainable methods in processing more than 100,000 tonnes of black, green and brown waste every year. The Irish waste market is continually evolving and CCI’s focus is always to grow the companies it invests in. We and management have a collective ambition to double the size of the business over the next 5 – 6 years through a combination of organic and acquisitive growth.”
CCI has been an active growth investor in Ireland since 2014. The City Bin Co. is the fund’s eleventh investment and CCI continues to explore other investment opportunities across the Irish market. Current CCI investments include The AA Ireland, Sports Surgery Clinic, Carroll Cuisine, Learning Pool and McCauley Pharmacy Group. CCI previously invested in Lily O’Brien’s and General Secure Logistics Services (GSLS). During April 2019, CCI announced the sale of Payzone to a joint venture company established by AIB plc and First Data Corporation.
CCI’s investment in The City Bin Co. is subject to approval from the Competition and Consumer Protection Commission (CCPC).
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Press Contacts:
The Carlyle Group
Laurie Mannix, MKC Communications
Tel: +353 (0)1 703 8620 Mob: +353 (0)86 814 3710 laurie@mkc.ie
Cardinal Capital Group
Tom McEnaney, McEnaney Media
Tel: +353 (0)87 2222 666 tom@tommcenaney.com
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About The City Bin Co.
The City Bin Co. was co-founded by Gene Browne in 1997 to bring a customer-centric approach to the waste industry. Today it is a leading provider of waste management services in both Dublin and Galway city, serving in excess of 80,000 household and commercial customers. The City Bin Co. was the first and only company in the waste management industry to be placed on the ‘Index of Excellence’ by Excellence Ireland. The practice and pursuit of excellence is part of the company’s culture. It has been a Deloitte Best Managed Companies (Ireland) four years in a row as well as twice representing Ireland in the European Business Awards in the area of ‘Customer Focus’.
About Carlyle Cardinal Ireland
Carlyle Cardinal Ireland is a joint venture between The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group. The €292 million private equity fund is focused on growth capital and buyout investment opportunities across the island of Ireland and investors include the Ireland Strategic Investment Fund and Enterprise Ireland.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $222 billion of assets under management as of March 31, 2019, Carlyle’s purpose is to invest wisely and create value on behalf of our investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,725 people in 33 offices across six continents.
Web: www.carlyle.com
Videos: https://www.youtube.com/user/OneCarlyle
Tweets: http://www.twitter.com/onecarlyle
Podcasts: http://www.carlyle.com/about-carlyle/market-commentary
About Cardinal Capital Group
Cardinal Capital Group is Ireland’s leading provider of alternative capital, directing private-equity capital, mezzanine finance and alternative lending to a broad range of sectors in the Irish market. Cardinal invests its own capital alongside institutional funders to support entrepreneurs and corporate management teams as well as real-estate investors and developers.
Web: www.cardinalcapitalgroup.com
Advisers
The City Bin Co. and its shareholders were advised by IBI Corporate Finance, Flynn O’Driscoll Solicitors and KTA, while William Fry and PwC advised CCI.
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June 16th, 2019
‘Don’t be afraid to change your career path if you are not happy’
Each week, we profile one of Ireland’s corporate leaders, tracing their career to date and exploring the lessons they have learned along the way. This week, we meet Jonathan Cosgrave of the Carlyle Group.
Jonathan Cosgrave is a managing director at the Carlyle Group and co-head of the €292 million Carlyle Cardinal Ireland Fund. CCIF has invested in Irish companies including the City Bin Co and Sports Surgery Clinic, and sold Payzone for €100 million.
Tell us about your career to date.
I graduated from Trinity College Dublin with a first-class honours degree in Pharmacy and, after a brief period working as a pharmacist, returned to study at UCD’s Smurfit School of Business.
I then moved to London, joining JP Morgan’s investment banking team. In 2004, I moved into private equity, joining private equity firm Warburg Pincus where I focused on growth capital and buyout investment opportunities.
Ten years later, in 2014, I was headhunted by the Carlyle Group. The opportunity to move back to Dublin and co-head Carlyle’s investment business in Ireland was one I couldn’t refuse.
Are you where you expected to be in your career?
When I did my Leaving Cert, I didn’t even know that private equity existed, so to my 17-year-old self it’s a big surprise to be where I am today. Starting out in the mid-1990s, a traditional profession was considered the better career path and this, together with an interest in science, led me to Trinity College and pharmacy.
I quickly realised that working in the pharmacy industry was not for me and left it to study business. The lure of London beckoned and I accepted a job with JP Morgan without fully understanding what investment banking was all about.
It’s been a recurring theme in my career – being offered jobs in sectors of which I had no in-depth knowledge, but trusting my instincts that the path I was on was the right one.
Investment banking led me to private equity investing, which I love. I now have a 15-year track record of investing at two of the world’s biggest private equity firms which I never thought possible.
The role provides me the opportunity to look after people’s capital, solve complex problems, invest in great companies and work with brilliant management teams to support them to realise the potential of their businesses.
I’m further along in my career than I ever expected, and the biggest lesson I’ve taken away from my career is to try new things and trust your instincts. If it feels right, it probably is.
What was the best career advice you got along the way?
My old Warburg Pincus boss said to me: “Even if you’re very talented and can work hard, you’re better off fishing in a less crowded pond.”
What he meant is that if you want to excel and grow, avoid working in industries, companies and cities that attract huge waves of talent and where you are just another cog in the wheel with limited headroom.
That was very relevant when I moved to Dublin, as the private equity market was in its infancy so it was quite entrepreneurial.
Based on your own experience, what are your top career tips?
Don’t be afraid to change career paths if you are not happy. Work forms so much of our life that it would be miserable to be in a job you don’t enjoy. It takes courage to change direction or career.
I was very apprehensive taking on a new career when I realised pharmacy wasn’t for me, but what I learned was that it’s best to change quickly and it’s not a sign of failure, just another chance to learn.
In many ways, “talent” is overrated. The ability to work hard, be curious, learn quickly and act with common sense are real talents in themselves.
I’d encourage anyone starting their career to consider sales, as all jobs involve selling. People need to be better at selling themselves and their ideas – don’t hide your light under a bushel.
You only have one reputation, which takes a long time to build, but it can be taken away very quickly. So conduct your business with integrity and do the right thing every time.
I look after the capital of pension funds, the savings of individuals and I take that responsibility very seriously. I treat their money it as if it were my own and balance risk and reward when I make an investment.
Have the courage to back yourself. The prize in life goes to the person who thinks they can.
How would you define your work style, and how has this evolved over the years?
My personality leans more towards the introverted and analytical, so I’m often happiest working on my own, but that too has evolved as I’ve matured.
I’ve come to realise that there is more value in being part of a team where you can get to a better answer to a problem from the diversity of views offered.
I no longer believe every answer is black or white, but more often grey. Dealing with ambiguity is a hugely important part of investment decision-making.
In terms of managing teams and individuals, what are your insights?
Encourage and support people to develop confidence – confidence to seek advice, to take a chance, fail and call it early.
I try to listen more than I speak, and all team members need to know their views are as important as anyone else’s.
It’s also critical to be human and show your vulnerabilities – by doing so, you are indirectly giving permission for others to ask for help, to seek advice and share issues and concerns.
I also believe in constant constructive feedback. I’m not a fan of annual reviews, and prefer to provide and receive regular feedback throughout the year.
What about communication and negotiating the typical ups and downs of working life?
In general, people in Ireland are great talkers, but not always the best communicators and that was certainly the case for me when I started my career.
I have benefited from communication training and coaching over the years, which has demonstrated the power of clear and concise verbal and written communications, and the importance of non-verbal communication.
I can hold pretty definitive views, but working with so many different management teams and boards of directors has taught me the value of strong communication and debate, and that two heads are always better than one in making good decisions.
Has networking played an important part in your career?
Business is built on relationships. Establishing Carlyle in Ireland and originating investments to create a track record for the CCI Fund has meant that I have had to network extensively, and it has confirmed to me the value of making personal connections and building and maintaining relationships.
Be open-minded and genuine. Don’t feel the need to change your character to suit the situation. People choose to do business with you because they like and trust you, so be your authentic self.
If you had to choose another career tomorrow, what would it be and why?
If I wasn’t working in private equity, I’d still love to invest and manage capital on behalf of families or individuals for the long term, helping to protect and grow their capital.
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2018
2017
May 18th, 2017
Carlyle Cardinal Ireland Invests in Sam McCauley Chemists Limited
Co Wexford, Ireland – Carlyle Cardinal Ireland (CCI), the private equity fund established by The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group, has agreed an investment in Sam McCauley Chemists Limited, the independent retail pharmacy group. The investment, terms of which are not being disclosed, is expected to complete before the end of the summer.
Having joined his father’s business in 1978, Sam McCauley has transformed it from a single family-owned chemist shop in Enniscorthy, County Wexford, to the third largest retail pharmacy group in Ireland. With 30 stores and almost 600 employees nationwide, the company had a turnover of €75 million in 2015. Through a relentless focus on customer service and patient well-being, Mr. McCauley spearheaded the evolution of the company from a traditional pharmacy model to a customer-led Health, Wellness and Beauty brand offering a unique combination of prestige products and services. Mr McCauley will continue as a significant shareholder of the company and remain on the board of directors alongside Ian Daly and Jonathan Cosgrave from CCI.
Upon completion of the investment, Patrick McCormack will step down as Managing Director of the company following more than 25 years’ service, to pursue other business interests. Mr McCormack joined Sam McCauley’s as a pharmacist in 1991 and was appointed Managing Director in 2007. His tenure as Managing Director has seen the company expand store numbers nationwide and launch a successful online health and beauty offering. Tony McEntee, one of Ireland’s most experienced retailing executives, and the former CEO of Allcare Pharmacy Group and Finance Director of Lifestyle Sports, will join the company as CEO following the completion of the investment.
Sam McCauley, said: “The health and well-being of our customers is at the heart of everything we do at Sam McCauley’s. We have maintained that customer focus and high degree of service as the business expanded in size over the years through a continuous focus on introducing new products and services. The investment from CCI allows us to continue this growth as an Irish-owned business and will accelerate future innovations for the benefit of our customers and for the development of our loyal employees. I thank Patrick for his commitment, dedication and long service to the business, and for the significant growth that the company achieved under his leadership. I look forward to working with Tony and CCI during this exciting next stage in the company’s evolution”.
Jonathan Cosgrave, Managing Director, The Carlyle Group said: “CCI is focused on investment opportunities in businesses supported by strong growth drivers. We believe in the long-term potential of retail pharmacy as a cornerstone of frontline healthcare service delivery despite the unprecedented changes to the industry in recent years. The Irish population aged over 65 years is expected to increase by 35% over the next 10 years and Sam McCauley’s has a demonstrated ability to meet the increasing healthcare needs of our aging population in the community setting. We and the Sam McCauley management team have the collective ambition and capital to double the size of the company – through a combination of organic and acquisitive growth – over the next three-to-five years to maintain Sam McCauley’s as the largest Irish-owned pharmacy group.”
Ian Daly, Director, Cardinal Capital Group, said: “We are delighted that our first Irish retail sector investment is in an outstanding business servicing both patient and consumer health and wellness needs. The Sam McCauley brand is synonymous with high levels of trusted customer service and replicating this bond between its customers and employees across an expanded retail network is a key part of our investment. An increasing focus on healthier lifestyles underpins growth in the Health, Wellness & Beauty market for the foreseeable future and we believe that Sam McCauley’s superior in-store service levels and product range combined with its online, mobile and social media touch-points position the company very favourably to meet this demand.”
CCI has been an active growth investor in the Irish market over the last three years. Sam McCauley Chemists Limited is the fund’s eighth investment and the fund continues to explore other investment opportunities. Current fund investments include The AA Ireland, Payzone, Carroll Cuisine, Lily O’Brien’s, General Secure Logistics Services (GSLS), Learning Pool and Abtran. Upon completion of the Sam McCauley investment, the CCI portfolio companies will employ more than 4,000 people across the island of Ireland.
The investment is subject to approval from the Competition and Consumer Protection Commission (CCPC).
*****
Press Contacts:
The Carlyle Group
Laurie Mannix, MKC Communications
Tel. +353 1 703 8620 Mob: 086 814 3710 laurie@mkc.ie
Cardinal Capital Group
Tom McEnaney, McEnaney Media
Tel: +353 87 2222 666 tom@tommcenaney.com
About Sam McCauley Group
Sam McCauley Chemists was founded in 1953 by the late G.B. McCauley who acquired the Brooke Kelly Pharmacy at 21 Rafter Street, Enniscorthy, Co. Wexford which had operated as a pharmacy since the early 1900’s. Over the next 40 years McCauley Chemists grew into a thriving enterprise. Sam McCauley and his wife Leslie, both Pharmacists, joined the family business in 1978 maintaining the well-established ‘family Chemist’ culture, long nurtured by Sam’s parents and staff.
Sam McCauley Chemists Group occupies a unique niche in the Irish retail pharmacy market. The company’s ‘One Stop Health & Beauty Shop’ concept embraces a wide range of products and services, including Digital Photo Centres, Prestige Cosmetics and Perfumery, Beauty Salons, and expanded Healthcare Services, all this in addition to the core traditional services provided by experienced friendly pharmacists and staff.
Today Sam McCauley Chemists operate 30 stores across Ireland including Wexford, Dublin, Cork, Carlow, Kilkenny, Waterford, Cavan, Meath, Tipperary and Kerry. The company employs almost 600 staff, including c.40 people at its Support Office in Wexford. The award-winning company is one of the best recognized retail pharmacy brands in Ireland building on a tradition of excellent customer service. In 2016 it was voted the 4th best customer experience in Ireland according to a survey conducted by Consumer Experience Insights, making it the highest ranking pharmacy chain for customer experience in Ireland. Sam McCauley Chemists is ranked amongst the top 500 companies in Ireland and is one of a small group of retail pharmacies which holds the title of ‘Deloitte Best Managed Companies’.
Web: www.sammccauley.com
Twitter: @sammccauleychemists
Facebook: www.facebook.com/sammccauleychemists
Youtube: Sam McCauley Chemists
Instagram: sammccauleys
About Carlyle Cardinal Ireland
Carlyle Cardinal Ireland is a joint venture between The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group. The €292 million private equity fund is focused on growth capital and buyout investment opportunities across the island of Ireland.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $162 billion of assets under management across 287 investment vehicles as of March 31, 2017. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,550 people in 31 offices across six continents.
Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market- commentary
About Cardinal Capital Group
Cardinal Capital Group is Ireland’s leading provider of alternative capital, directing private-equity capital, mezzanine finance and alternative lending to a broad range of sectors in the Irish market. Cardinal invests its own capital alongside institutional funders to support entrepreneurs and corporate management teams as well as real-estate investors and developers.
Web: www.cardinalcapitalgroup.com
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May 20th, 2017
Emma’s first guest is MD of the leading exponent of what is actually a relatively new concept here in Ireland, equity investment. Peter heads up the Irish wing of the The Carlyle Group, a 40 year-old global equity investment fund with Headquarters in Washington & a staggering 170 billion dollars in capital.
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December 22th, 2017
Lily O’Brien’s to be acquired by Colian Holdings SA for €40 million
Strong growth during Carlyle Cardinal Ireland Fund Ownership to Continue with Colian
Lily O’Brien’s, the Irish manufacturer of premium chocolate and desserts, has agreed to be acquired by Colian Holding SA for €40 million on a debt-free, cash free basis from its existing shareholders, the Carlyle Cardinal Ireland Fund (CCI) and members of the Lily O’Brien’s management team. The acquisition is expected to complete in January 2018.
Based in Kildare and founded in 1992 by Mary Ann O’Brien in the kitchen of her home, Lily O’Brien’s today employs 120 people at its Newbridge plant and generated revenues in excess of €30 million during 2016.
Employing approx. 2,000 people, Colian Holdings SA is listed on the Warsaw Stock Exchange (COL:WSE) and is a Polish producer and distributor of food products in the confectionary, culinary products and beverage sectors. Colian has a number of leading and trusted brands in the Polish market, and exports to over 60 countries around the world. Colian also owns the well-known UK chocolate brand, Elizabeth Shaw.
CCI, the private equity fund focusing on investments across the island of Ireland founded by The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group, acquired a majority shareholding in Lily O’Brien’s in January 2014, investing alongside Eoin Donnelly (CEO), Mary Ann O’Brien (founder) and other members of the management team. Lily O’Brien’s has undergone significant growth during the four years of CCI ownership. Since 2013, total revenues and global export revenues have increased by almost 50%, underpinned by increased investment in production facilities and new product development.
Lily O’Brien’s represents a compelling strategic fit for Colian with its high level of brand recognition and market position, complementing Colian’s existing products. Lily O’Brien’s currently exports more than 80% of its products and the brand is sold in more than 15 countries. In addition to its international retail presence, the company also supplies airlines and food services companies, with the brand available on 20 airlines around the world. Lily O’Brien’s has a successful innovation track record that can be applied across the enlarged group, as well as an accomplished international management team.
Lily O’Brien’s will continue to be run by its existing Irish management team led by CEO, Eoin Donnelly, with Mary Ann O’Brien remaining as a director and consultant to the company. Colian’s vision is to continue the growth trajectory of Lily O’Brien’s as a premium global chocolate and dessert brand through further investment in production, sales and marketing, and innovation. Lily O’Brien’s will continue to develop its Newbridge operations to support this growth.
Eoin Donnelly, CEO, Lily O’Brien’s said; “CCI has been a fantastic partner for Lily O’Brien’s and the management team over the last four years, as the company increased its international sales, invested in new production capacity and enlarged the employee base. We selected Colian as the new owner for the business given our shared vision of growing our brand globally. Colian exports to over 60 countries worldwide, providing us with access to potential new markets, and their commitment to new product development and innovation is very exciting for employees and the company”.
Jonathan Cosgrave, Managing Director, The Carlyle Group said; “Lily O’Brien’s was our first investment in the Irish market and working with a world class management team led by Eoin and Mary Ann has been a privilege for us. The business has grown in every respect during the four years of our investment and the acquisition price recognises the value of both the Lily O’Brien’s brand and the capabilities of the business. It has also created a sustainable impact for the Irish economy”.
Nick Corcoran, Founder, Cardinal Capital Group said; “The Lily O’Brien’s investment highlights the value of private equity for Irish companies and their management teams. Over the last four years, we have become an important source of funding and support for Irish companies, investing in eight companies, including AA Ireland, Carroll’s and Sam McCauley, and employing more than 4,000 people across our portfolio. We look forward to supporting more Irish companies with investment in 2018. We thank Lily’s management team and employees for all their efforts and wish them and Colian continued success for the future”.
Ends.
Press Contacts:
The Carlyle Group
Laurie Mannix, MKC Communications
Tel. +353 1 703 8620 Mob: 086 814 3710 laurie@mkc.ie
Cardinal Capital Group
Tom McEnaney, McEnaney Media
Tel: +353 87 2222 666 tom@tommcenaney.com
Colian Holding SA
Beata Kolterman, Kolterman Media Communications
Tel. +48 501184164, b.kolterman@kmc-pr.pl
About Lily O’Brien’s
Lily O’Brien’s is an Irish-based manufacturer of premium chocolates and desserts. It was founded by Mary Ann O’Brien, a well-known Irish businesswoman, in 1992. Although well established in Ireland, Lily O’Brien’s is an export-led business with over 80% of its turnover derived from international sales in more than 15 countries. Lily O’Brien’s primary focus is premium branded chocolate and it offers a diverse range of chocolate products including gifting, everyday, self-treat and seasonal products. Lily O’Brien’s expanded into the desserts sector in 2011 and now supplies its branded products into blue chip international airlines and food service companies. 120 people are employed at Lily O’Brien’s headquarters in Newbridge where the company’s manufacturing and product development operations are located.
About Colian Holdings SA
Founded in 1990 by Jan Kolański as a producer of organic herbs and spices for the domestic Polish market, Colian is now a leading European branded business with strong international recognition through its successful exporting to over 60 countries across the world. Colian operates across three strategic business units including confectionary, culinary products (seasoning products, nuts and dried fruit) and beverages. Colian’s acquisition of Elizabeth Shaw, a UK chocolate business, in 2016 represented Colian’s first international acquisition and of its strategy of continued expansion into international markets through high quality and well-loved brands.
About Carlyle Cardinal Ireland
Carlyle Cardinal Ireland is a joint venture between The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group. The €292 million private equity fund is focused on growth capital and buyout investment opportunities across the island of Ireland.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $174 billion of assets under management across 306 investment vehicles as of September 30, 2017. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,550 people in 31 offices across six continents.
Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market- commentary
About Cardinal Capital Group
Cardinal Capital Group is Ireland’s leading provider of alternative capital, directing private-equity capital, mezzanine finance and alternative lending to a broad range of sectors in the Irish market. Cardinal invests its own capital alongside institutional funders to support entrepreneurs and corporate management teams as well as real-estate investors and developers.
Web: www.cardinalcapitalgroup.com
Advisers
Lily O’Brien’s and its shareholders were advised by IBI Corporate Finance, PwC, KPMG and A&L Goodbody.
2016
2015
