BGF announces 6^th Irish investment in less than 2 years

Embargo: 00.01am Wednesday 7^th October 2020.  BGF, Ireland’s largest growth capital investor has today closed a multi-million euro investment in Croom Precision Medical which is based in Croom in County Limerick.  BGF in Ireland is supported by the Ireland Strategic Investment Fund (ISIF) and the main Irish banks.  This is the 3^rdinvestment which BGF has completed in an Irish business since June of this year and the 6^th investment completed in less than two years.  BGF only takes minority positions in the businesses in which it invests, and it aims to support and facilitate the growth plans of existing owners.

Michael Maher, former Chief Operating Officer of Glen Dimplex, is investing in Croom Precision Medical alongside BGF and will join the Board as independent Non-Executive Chairman. 

Croom Precision Medical is a precision engineering business which specialises in designing and manufacturing precision components for the medical device industry.  The company was set up in 1984 by Paddy Byrnes and focuses on the machining and handling of precious metals for use in a sterile environment.  The company employs 40 people in Croom and plans to recruit a further 20 over the coming two years.

The company is now led by Patrick Byrnes (son of Paddy).  The company has won a number of new long-term contracts and will use the BGF investment to expand its existing facility, invest in new capital equipment and create the new jobs.

Croom Precision Medical is located close to a hub of global medical device manufacturers who have significant operations located in the South and West of Ireland. The company has longstanding relationships with a number of these international players including several household names in the MedTech sector. 

In addition to Michael Maher, Joe Higgins of BGF is also joining the Board with Maedhbh O’Driscoll of BGF joining as a Board observer.

Speaking today, Leo Casey, Head of BGF in Ireland, said; “Croom Precision Medical is a wonderful example of a successful Irish manufacturing business and how such businesses can leverage the presence of much larger multinational businesses across Ireland.  Paddy Byrnes was a visionary when he set up the business in 1984 and under his leadership and that of his son Patrick, they have built an enviable reputation and a blue-chip customer base.  We are delighted to support their growth plans and to welcome them into the growing portfolio of successful Irish businesses backed by BGF.”

Patrick Byrnes (CEO of Croom) said; “[Our team has ambitious growth plans for the future, underpinned by a number of long-term medical device manufacturing contracts. We are excited to be partnering with the BGF team to bring Croom Precision Medical to the next level on a global stage, as a high performance supplier within the MedTech sector.”   

Incoming Chairman Michael Maher, said; “Given Croom Precision Medical’s focus on innovation, quality and customer service it is well placed to capitalise on the business opportunities which this sector presents.  I am excited to partner with the Management Team and BGF to aggressively grow the business over the coming years.”

Advisors

Holmes O’Malley Sexton (legal), Deloitte (financial due diligence and tax) and CIL Management Consultants (commercial due diligence) acted for BGF. Croom was advised by EY (financial) and Flynn O’Driscoll (legal).