Sonas Bathrooms management has acquired a majority stake in the company from its private equity financier MML Growth Capital Partners Ireland.
The buyout was led by Managing Director Richard Sloan, funded by Muzinich & Co through a combination of debt and equity. The terms of the deal were not disclosed.
Sonas claims to be Ireland’s largest single provider of bathroom products sold under its own brand. The company has 90 full-time employees and is expected to generate sales of 45 million euros this year.
MML will retain a minority stake in the business, estimated at approximately 10 percent.
MML invested in Sonas in December 2017, acquired a minority stake and funded the company’s growth strategy. The deal was worth between € 20 million and € 30 million.
Sonas supplies a range of bathroom products through a network of retailers across the country, including most bathroom showrooms and home builders. It posted sales of around € 24 million in 2016 just before MML came on board.
The Sonas deal was part of MML’s first € 125 million fund backed by Enterprise Ireland, AIB and a number of international institutional investors. It has a second fund of 145 million euros and has made three investments so far.
Doubled its value
Neil McGowan, a partner and co-head of investments at MML, said the value of the Sonas business has since doubled, suggesting a strong return for its investors. “It was a good investment for us, we are very satisfied,” he said.
Mr McGowan said the MBO was a “natural progression” for the company and a “template” for the type of investments MML would make in the Irish market.
Commenting on the MBO, Mr. Sloan said, “This deal reflects management’s ambition and belief in the Sonas brand. We are very excited about the support and support from Muzinich under the direction of Howard Mahon. “
He said working with MML was a “positive experience” for Sonas as its “investment approach fully supported our branding and growth strategy.”
Howard Mahon, Director of Pan European Private Debt at Muzinich said, “We look forward to working with the management team and the broader company as they enter an exciting new phase of growth. We see the macro environment in which Sonas operates very positively and expect strong organic growth in the future, coupled with expansion and acquisition potential. “
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