Private equity fund takes 38% stake in Sports Surgery Clinic in Santry

Carlyle Cardinal Ireland buying into centre which posted revenue of €42.3m in 2017

A private equity fund has invested in the Sports Surgery Clinic in north Dublin for an undisclosed sum.

Carlyle Cardinal Ireland, the fund established by the Nasdaq-listed Carlyle Group and Cardinal Capital Group, has taken a 38 per cent stake in the hospital which specialises in orthopaedic surgery, spinal surgery and sports medicine.

It is believed that a small number of the original founders are selling their shareholding in the company.

The investment is expected to complete in the coming months.

Launched in 2007, the clinic has grown significantly and in 2017 recorded revenues of €42.3 million and profit before tax of €4.5 million.

Existing shareholders in the company include former Manchester United and Republic of Ireland footballer Kevin Moran, with a 5 per cent stake, his brother Ray, who holds 30.8 per cent, and medical device entrepreneur Michael Kinsella.

John Dolan, Cardinal Capital Group's managing director, said the fund's backing will see two additional theatres added, increasing surgical capacity by 40 per cent.

The investment is the fund's second healthcare investment, according to Carlyle Group managing director Jonathan Cosgrave, who notes that planned increases to the clinics capacity will expand its workforce.

Operating theatres

Facilities at the clinic include five ultra clear air operating theatres dedicated to orthopaedic and spinal surgical procedures, a diagnostic imaging service, a CT scanner and an expansive physiotherapy and rehabilitation department.

It employs more than 300 people and has 63 in-patient beds, 26 day-care beds and 21 consultancy suites.

"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," said Dr Josh Keaveny, the clinic's chief executive.

The Sports Surgery Clinic in Santry is the fund's 10th investment in the Republic. Other investments include the AA Ireland, Payzone, Carroll Cuisine and McCauley Pharmacy Group.

The fund previously invested in Lily O’Brien’s and General Secure Logistics Service before exiting in 2018.

Its investment in the clinic is subject to approval from the Competition and Consumer Protection Commission.