Quinn Industrial mulls IPO potential
Manufacturer sees sales surge
QUINN Industrial Holdings is sounding out the market on options including a potential stock market flotation or private equity investment for the firm, the Irish Independent understands.
Formerly the heart of Sean Quinn's business empire, Quinn Industrial Holdings' activities including the manufacturing of plastic packaging and building products.
It has experienced a surge in revenues and profitability, despite the impact of Brexit uncertainty and currency fluctuations.
An initial public offering (IPO) of the company would be a significant landmark for the business, which was acquired in 2014 for €98m by a group of local businessmen - John McCartin, John Bosco O'Hagan and Ernie Fisher - backed by US hedge funds Silver Point Capital, Brigade Capital and Contrarian Capital. The US firms own more than 80pc of the company.
Shareholders also include Quinn Industrial Holdings' management team, who include CEO Liam McCaffrey. The company employs 830.
While an IPO is an option for the firm, market sources cast doubt over that move given continuing stock market volatility.
The company declined to comment on any possible IPO or investment process.
However, it said it "continues to assess a range of financing options to drive continuing growth".
Quinn Industrial Holdings, which has been subject to sabotage and intimidation over the past number of years, has invested €45m in its business since it was acquired in 2014.
An additional €10m in capital expenditure will be invested in it this year, compared to €21.7m last year.
The investment has been fuelled almost exclusively from cashflow, the company's chief financial officer Dara O'Reilly said yesterday.
The company's turnover last year jumped 15pc to €240m. Earnings before interest, tax, depreciation and amortisation (ebitda) rose 10pc to €26.4m.
Its products include plastic packaging for food, as well as cement and concrete-product manufacturing. Revenue has risen 50pc since the business was bought, while ebitda has more than quadrupled.
The growth in revenue last year was driven by volumes on the island of Ireland, where the firm generates just under half its sales. The remainder are from Great Britain.
Speaking to the Irish Independent, Mr McCaffrey said the group could consider the construction of a manufacturing plant in Britain and said future consolidation within the concrete manufacturing sector in Ireland could also present acquisition opportunities.
It's also planning to build its first ready-mix concrete facility in the Dublin region, at a site near the Naas roundabout, with an investment of between €2m and €3m.
It will capitalise on opportunities on the east coast. The group will eventually target a 10pc to 15pc share of the Dublin ready-mix concrete market.