The Quinn Business Retention Company (QBRC), a group of former executives of the Quinn Group and a number of businessmen based in the northwest, has led the acquisition of two key units of the manufacturing arm of the former Quinn Group, now known as the Aventas Group.
QBRC is being backed by three existing financiers of the business and not Endless, a UK private equity house, which had originally backed the consortium. The deal is expected to be completed in early October in relation to the two divisions it is acquiring, namely its construction industry supply division and its packaging businesses. The two businesses employ 650 people in Derrylin/Ballyconnell area.
Aventas will remain in control of the glass division of the former Quinn Group and some other assets.
The three existing financiers of the business, who are backing QBRC, are understood to control over 50 per cent of its shares which should ensure the deal is completed once the remaining due diligence and legal processes are complete.
Ownership of the former Quinn Group has been split up between a consortium of up to 40 different parties over the years.
Strategic Value Partners, a long-standing shareholder, is understood to be selling out. Silverpoint, another long-term investor, is understood to be one of the three parties backing QBRC. The enterprise value of the two units being acquired is estimated at between €80 million and €100 million.
The two divisions will be led by Liam McCaffrey, former Quinn Group chief executive, once the deal is completed.
Other members of QBRC include Quinn Group financial director Dara O'Reilly and former Quinn Group development director Kevin Lunney. Local businessmen John McCartin, John Bosco O'Hagan and Ernie Fisher are also part of the consortium.
Mr McCaffrey, chief executive designate of the business, said in a statement: “I would like to expressly thank Endless for supporting QBRC from the outset, and for recognising the potential in this business.”
He said he would also like to thank the local community for its support.
“We look forward to working closely with our financiers, the staff and customers of the business as we seek to grow and develop them in the years ahead,” he said.
McCaffrey declined to comment to The Irish Times on how much the three financiers will hold in the business post the deal compared to QBRC.
No decision had been made on who will chair the business or on other positions in the group, he said. Dara O’Reilly, the former finance director of the Quinn Group, is expected to become his chief financial officer, however.