Erisbeg, one of Republic’s largest private equity firms, has acquired a majority stake in a Co Dublin balconies maker in a deal estimated to value the business at about €20 million.
The deal comes as the Government has introduced initiatives to support apartment building following a slump in multi-unit construction in recent years.
The acquired business, Forte Pespa, is based in Rathcoole and is the leading full-service provider of prefabricated modular balcony solutions in Ireland, Erisbeg said in a statement.
Following this deal, the company plans to double its manufacture capacity to 6,000 balconies a year with a €6 million investment in a new plant adjoining its existing factory in Dublin. The company will explore acquisitions in Ireland and the UK, Erisbeg said.
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The new-build aluminium balcony market in Ireland is worth about €30 million to €35 million a year, the private equity company said.
This market is expected to gain market share relative to steel balconies and grow by 30 per cent year-on-year for the next three years, it said.
The Government decided in Budget 2026 to cut the VAT rate on the sale of completed apartments to 9 per cent from 13.5 per cent, and introduce enhanced corporation tax deductions for certain apartment construction projects in an effort to improve the viability of development projects.
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It followed new apartment construction guidelines unveiled during summer, including an increase in the number of studio apartments developers could include in a project and a reduction in the minimum permitted size of apartments.
The guidelines have been the subject of a High Court legal challenge amid claims they should have been subject to an environmental assessment, with Mr Justice Richard Humphreys deciding last week to reserve judgment.
Still, the Government intends to replace the guidelines with a national planning statement, which will be subjected to an environmental assessment.
Forte Pespa was set up in 2016 by chief executive Oltian Dervishi and his father, Agim. Oltian Dervishi, who owned 85 per cent before the transaction, will continue as CEO, while Agim will step back from the business.
Maurice Tunney, a property and development veteran, joined the company as chief financial officer this month and will also take a stake in it.
This is the third acquisition made by Erisbeg from its recently completed second fund, Erisbeg II.
The fund raised €175 million with all the investors in the company’s first fund contributing again as well as a number of additional institutional investors from Norway, Belgium and the Netherlands.
AIB, which invested €10 million in Erisbeg I, has also invested in the new fund, along with Bank of Ireland and the Ireland Strategic Investment Fund (ISIF).
