Venture capital firm BGF has closed a multimillion-euro deal for a minority interest in Croom Precision Medical, a Co Limerick-based precision engineering business that designs and manufactures components for the medical device industry.
Michael Maher, the former chief operating officer of Glen Dimplex, is also investing in Croom Precision Medical and will join its board as independent non-executive chairman.
BGF, formerly the Business Growth Fund, counts the State-owned Ireland Strategic Investment Fund and the main Irish banks among its investors. This is the third minority investment in an Irish business it has made since June and the sixth over the past two years.
It is also BGF's first investment in Munster, with the deal following the opening of its Cork office in February.
Croom Precision Medical was set up in 1984 by Paddy Byrnes and focuses on the machining and handling of precious metals for use in a sterile environment. The company, now led by his son Patrick, employs 40 people in Croom and plans to recruit a further 20 over the coming two years.
Medical device hub
Located close to a hub of medical device manufacturers, the company has won a number of new long-term contracts. It intends to use the BGF investment to expand its existing facility and invest in new capital equipment, as well as creating employment.
Patrick Byrnes, Croom Precision Medical's chief executive, said the company had "ambitious growth plans".
Joe Higgins of BGF will also join the board, with his colleague Maedhbh O’Driscoll becoming a board observer.
"Croom Precision Medical is a wonderful example of a successful Irish manufacturing business and how such businesses can leverage the presence of much larger multinational businesses across Ireland," said Leo Casey, head of BGF in Ireland.
“We are delighted to support their growth plans and to welcome them into the growing portfolio of successful Irish businesses backed by BGF.”