Samantha McCaughren, Irish Independent
Sun 3 Sep 2023 at 02:30
Celtic Linen, a supplier of rented linen to hospitals and hotels, was sold last week for €31.5m, equating to around three times the figure invested by sellers Causeway Capital Partners.
The buyer, Johnson Services Group, an AIM-listed UK laundry provider, is led by Irishman Peter Egan.
Celtic Linen was originally acquired by Causeway in December 2016 out of examinership for €4m, while it is understood a further €4.5m was invested in the years that followed. It operates two laundry plants in Ireland and is led by CEO Joanne Somers.
Causeway’s founders include businessmen David Raethorne and Matt Scaife. The Ireland Strategic Investment Fund (ISIF) is a cornerstone investor in its first private equity fund, together with pension funds, financial institutions and private individuals.
Scaife said: “We are delighted to have secured JSG as the new owner of Celtic Linen and to crystallise a strong return for Causeway Capital’s investors.”
JSG has agreed to complete an ongoing €1.9m capital investment programme
At the time of the deal in 2016, the acquisition successfully secured 270 jobs at the company’s headquarters in Wexford.
Since then, the business has completed a major capital investment programme, a bolt-on acquisition and sales have grown from £12m (€14m) to more than £29m and it employs 350 full-time equivalent staff.
Celtic Linen’s other shares were held by employee shareholders, including Somers, who will remain with the business.
As part of the transaction, JSG has agreed to complete an ongoing €1.9m capital investment programme in the group’s Wexford plant to increase efficiency and improve sustainability through reduced energy usage.
Causeway exited ecommerce business, In the Style, in 2021 following its IPO. It is also a major shareholder in Patisserie Valerie a bakery coffee retailer.
Causeway Capital triples its return on Celtic Linen investment | Independent.ie
