ON TRACK FOR GROWTH
Brooks Group and Suir Engineering announce acquisition details while Wogan Build Centre looks to future growth with substantial investment
SUIR ENGINEERING ACQUIRED BY PRIVATE EQUITY GROUP
It’s been announced that Suir Engineering is to be acquired by private equity group Duke Street. Suir employs 1,300 people and is headquartered in Waterford and was a jointly owned subsidiary of Dalkia and EDF Energy. According to the company the transaction, which includes investment by the senior management team, will enable it to enhance the services it offers to clients, while operations will continue as normal from its main base in Waterford and its other offices in Dublin, Stockholm, Copenhagen and Frankfurt.
With an annual turnover of around €300 million, Suir has nearly four decades of engineering expertise in its core sectors of pharma, energy and utilities, food & beverage and data centres. The completion of the transaction remains subject to obtaining applicable regulatory approvals.
Duke Street, one of Britain’s best known private equity groups, has a strong track record of investing in industrial service companies. Over the last 25 years it has invested over €2.5 billion in more than 50 companies, achieving investment returns in excess of 25% over that period. Paul Adams, Partner at Duke Street, said Suir’s reputation as a provider of innovative engineering solutions on projects across Europe was second to none.
“We are delighted to acquire Suir Engineering, a market-leading business that is a great fit for our investment program. The Duke Street team has previous successful experience in industrial services as well as Suir’s underlying sectors. The company has a highly skilled workforce, an extremely strong safety record and a healthy pipeline of projects across Europe in all of its highly attractive end-sectors. We have been impressed with Suir’s growth strategy and we look forward to actively supporting the existing management team in delivering their ambitious plans.”
Michael Kennedy, Managing Director, Suir Engineering, said he believed the partnership with Duke Street would be transformative for the company, enabling it to grow steadily while continuing to provide the best service possible to its Irish and international clients. “We at Suir are looking forward to partnering with Duke Street who share our vision, values and ambition. Together, we will accelerate Suir’s growth by investing in people and expanding the business proposition to include more international work in key client sectors such as technology, renewables and life sciences. We believe this will consolidate our position as a leader in the provision of mechanical, electrical and instrumentation engineering services that are expertly delivered by our very experienced team.”
BROOKS GROUP ACQUIRES KILDARE BUILDERS PROVIDERS
Brooks Group, which has a branch in Tullamore, has announced the acquisition of Kildare Builders Providers Ltd in Kildare town. The acquisition brings the Brooks Group network of outlets to nine in seven counties across three provinces. The company, which is one of the leading timber and builders’ merchants in the country, expects turnover to exceed €125 million in 2022 and plans to expand further in the next few years, both organically and by acquisition.
Brooks Group has been an institution in the Irish construction industry since its inception in the late 1700’s. It returned to Irish ownership in 2021 when it was purchased by Murdock Builders Merchants, a family-owned business based in Newry. The company has grown by developing a product offering in harmony with customer needs and by acquiring businesses that share this customer-focused approach. Brooks Group employs 195 people and already has eight branches in Ireland, including three in Dublin (Bluebell, Glasnevin and Sandyford), one in Wicklow (Bray), one in Cork (Togher), one in Galway (Ballybrit), one in Sligo and one in the midlands (Tullamore).
Commenting on the acquisition, Eddie Kelly, Executive Chairperson of Brooks Group said: “Kildare Builders Providers Ltd is a well-known business in Kildare and surrounding areas ever since it was founded in 2006 by John Crofton. Together with his team, John has built a fine business and we are delighted to welcome them to the Brooks Group.”
John Crofton, Founder and Managing Director of Kildare Builders Providers said: “Being part of the Brooks Group will enable us to offer our customers an even greater range of products, services and value.”
DEVELOPMENT CAPITAL INVESTS IN WOGAN BUILD CENTRE
Development Capital has announced a significant investment in Wogan Build Centre, a Drogheda-based, fast-growing building material distributor, with annual revenues of €36 million. It is the twelfth investment by Development Capital, bringing the total value of its investments in Irish SMEs so far to over €90 million. The investment in Wogan Build Centre is the third by the Development Capital Fund II, a €75 million fund, which has now invested over €25 million, approximately one third of its value.
Wogan Build Centre has over 40 years of trading experience and a strong reputation for customer service, quality products and specialist knowledge. This investment by Development Capital will support the company’s continued expansion by complementing its consistent organic growth with an acquisition-led strategy, focused on the addition of complementary businesses to expand Wogan Build Centre’s geographic footprint In Ireland.
Wogan Build Centre provides an extensive range of building and home improvement materials to specialist contractors, general trade and retail customers throughout Leinster. Employing 81 people in Drogheda, the experienced Wogan Build Centre team advises customers in the residential, commercial and industrial sectors on construction projects throughout the region.
Led by brothers Derek and Garrett Wogan, along with an experienced senior management team, the company has achieved significant year-on-year growth, tripling its revenues to €36 million, with employee numbers increasing to 81 since relocating to a new, dedicated 4,200m2 warehouse and retail showroom at Drogheda’s North Road in 2017. Since then, Wogan Build Centre has expanded its product range and established new specialist divisions in plumbing and renewables, civils & drainage and drylining, insulation, facades and offsite component supplies.
Along with its general merchant business, these businesses have spearheaded Wogan Build Centre’s organic and geographic market penetration in recent years. As part of the investment, Fran Stafford, Investment Director at Development Capital, will join the Board with Andrew Bourg, Co-Founding Partner of Development Capital, joining as an observer.
Announcing the new investment made by Development Capital Fund II, Andrew Bourg Co-Founding Partner of Development Capital said: “Wogan Build Centre is our twelfth investment to date and eighth outside Dublin. It is a great, fast-growing business led by two charismatic and ambitious leaders in Derek and Garrett, who have a clearly defined growth plan. From our diligence and research, we see strong market trends supporting the organic and acquisition growth plan including continuing demand for construction and renovation projects as well as a highly fragmented building merchant market, with the majority, over 80%, being independent stores.”
Derek Wogan, Managing Director, Wogan Build Centre said: “This investment by Development Capital is an important milestone for us as it enables us to take the development of the business to another level through acquisitions, following significant organic growth in recent years. We are thrilled to be working with a team that supports SMEs like us with both capital and expertise and we welcome Fran to our Board.”
Garrett Wogan, Commercial Director, Wogan Build Centre said: “The diligence, professionalism and work ethic of our team, together with an in-depth understanding of contractor needs and strong supply partnerships, are at the core of our service offering. The nature and speed of change in construction means that our specialist divisions have to be at the cutting edge of MMC, renewable technologies and legislative changes. We, together with Development Capital, are determined to set the industry standard in this regard.”
Denise Maguire Editor of Irish Construction Industry Magazine & Plan Magazine