TYRONE construction group McAvoy has secured a multi-million pound cash injection from a London-based private equity firm amid recent financial difficulties at the offsite specialist.
Blantyre Capital has provided significant financing to the company, which primarily operates from factory sites in Coalisland and Lisburn.
The investment firm specializes in partnering with European firms ‘to relaunch stable business models with temporary financial challenges and reposition them both strategically and operationally’.
The most recent set of accounts published by the McAvoy Group revealed a 25 percent fall in turnover during the year to October 31 2018. The £15m drop off in turnover contributed to a pre-tax loss of £1.8m for the year.
The company put the loss down to ‘delays in progressing opportunities’, blaming political and Brexit uncertainty for impacting new projects.
Members of the McAvoy family, Orla Corr and Conor McAvoy, are to remain as shareholding directors as part of the deal.
Mark Lowry, who replaced Eugene Lynch as managing director last year, remains in post. But Blanytre Capital will appoint its own director to help manage the firm.
Mr Lynch officially stepped down as a company director in November 2019.
Documents published by Companies House reveal that a new loan arrangement was finalised for the McAvoy Group in early February with Luxembourg based Meru Iv Sárl.
The company has previously partnered with Blantyre Capital for acquisition deals.
In a statement on Thursday, Orla Corr said: “It was important for our staff, our customers and our valued supply chain to join forces with a dynamic and reliable investor who will help accelerate our growth.
“We have our strongest project pipeline for many years and in a diverse range of sectors. Partnering with Blantyre will enable us to leverage industry-leading offsite solutions across the UK and Ireland and to continue to develop our award-winning digital construction strategy.”
Adam Phillips, head of investments at Blantyre Capital said the deal with McAvoy represented a significant investment for his firm.
“The offsite sector offers enormous opportunities for transforming construction and is a sector in which we are keen to invest. We are confident in McAvoy’s growth potential and we are looking forward to a highly successful and productive business partnership.”
Gavin O’Flaherty, of Belfast-based law firm Eversheds Sutherland led a cross-border team than helped strike the deal.
“This is an astute investment by Blantyre which will provide significant investment for McAvoy’s continued development and growth,” he said.
“We were delighted to support Blantyre on this transaction and we look forward to working with them again in the future.”
