The acquisition of a majority stake in Sam McCauley Chemists by the Carlyle Group has been given the green light by the Competition and Consumer Protection Commission (CCPC).
In May it was announced that private equity fund, Carlyle Cardinal Ireland (CCI) had taken on a majority stake in Sam McCauley Chemists.
Last Thursday it was announced that CCI, which is a private equity fund established by The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group, had agreed an investment in Sam McCauley Chemists Limited.
The investment deal, the terms of which weren't disclosed, is believed to be in excess of €50 million and was expected to be completed before the end of the summer.
Sam McCauley will continue as a minority shareholder of the company and remain on the board of directors alongside Ian Daly and Jonathan Cosgrave from CCI.
Patrick McCormack will step down as managing director of the company following more than 25 years service, to pursue other business interests.
Tony McEntee, one of Ireland's most experienced retailing executives, and the former CEO of Allcare Pharmacy Group and Finance Director of Lifestyle Sports, will join the company as CEO.
Last week the CCPC cleared the proposed deal.
The merger announcement outlined how 'the Carlyle Group L.P., through LXV Remedies Limited would acquire the entire issued share capital of Sam McCauley Chemists Limited. The Commission has formed the view that the proposed transaction will not substantially lessen competition in any market for goods or services in the State.'
Having joined his father's business in 1978, Sam McCauley transformed it from a single family-owned chemist shop in Enniscorthy, to the third largest retail pharmacy group in Ireland. With 30 stores and almost 600 employees nationwide, the company had a turnover of €75 million in 2015.
With a focus on customer service and patient well-being, Sam McCauley spearheaded the evolution of the company from a traditional pharmacy model to a customer-led health, wellness and beauty brand offering a unique combination of prestige products and services.
At the time Mr McCauley said: 'The health and well-being of our customers is at the heart of everything we do at Sam McCauley's. We have maintained that customer focus and high degree of service as the business expanded in size over the years through a continuous focus on introducing new products and services.
`The investment from CCI allows us to continue this growth as an Irish-owned business and will accelerate future innovations for the benefit of our customers and for the development of our loyal employee', he said.
Jonathan Cosgrave, Managing Director of the Carlyle Group said: 'We and the Sam McCauley management team have the collective ambition and capital to double the size of the company through a combination of organic and acquisitive growth over the next three-to-five years to maintain Sam McCauley's as the largest Irish-owned pharmacy group.'
Sam McCauley Chemists is the fund's eighth investment.