Betatherm sale nets backers €31m

Hibernia Capital Partners and a group of Irish and US-based businesspeople will share more than €30 million following the sale of Betatherm to US-based Measurement Specialties.

Hibernia announced yesterday that Measurement Specialties has agreed to buy Galway-based Betatherm for $38 million (€31.4 million). This will be made up of an immediate payment of $35 million, a deferred payment of $2 million and $1 million in Measurement Specialties stock.

Betatherm designs and manufactures devices for sensing and measuring heat. The company sells its products to companies in sectors including automotion, medical instruments, telecoms and aerospace. Its customers include the European Space Agency and car manufacturer, Saab.

Betatherm has operations in Ballybrit in Galway, Shrewsbury, Massachusetts, and Barbados. It also has a strategic partnership with a Chinese company, Betacera. It employs 145 people directly.

According to Hibernia senior partner, David Gavagan, the venture capitalist invested €6 million in Betatherm in 1998 to support a management buyout of the business.

Hibernia is the majority shareholder in the group. The other shareholders include its chief executive Terence Monaghan and directors Stephen Meagher, Anthony Dennehy and US-based Bill Sex.

Cork-based businessman, Gary Duffy, whose directorships include defunct airline, Jetmagic, Keytech and a number of technology companies, has a small stake. He is also a Betatherm director.

In all, Betatherm Group, which is the parent of most of the Irish-based companies, has more than 20 shareholders.

In a statement yesterday, Mr Monaghan said that the move would allow Betatherm to enhance its ability to set the standard in its marketplace.

Mr Gavagan said Betatherm was one of a small number of players in its particular business. "It is a very specialised space, and Measurement Specialties was keen to move into that area," he said.

Betatherm had been talking to a number of prospective buyers since late in 2004, when it was first approached. Talks with Measurement Specialties opened late last year.

Measurement Specialties is based in Virginia in the US. Last year it had sales of €117 million and profits of €9.7 million. Yesterday it also announced the purchase of YSI, another specialist in heat measuring instruments.