MML Investment Rescues CG Power Systems

01 Jul 2020 | 03.19 pm

MML Investment Rescues CG Power Systems

400 jobs secured in Cavan

01 Jul 2020 | 03.19 pm

MML Growth Capital Partners has agreed a deal to acquire CG Power Systems Ireland, which makes distribution transformers in Cavan.

The management team is also investing in the acquisition of the business from Dutch liquidators of a parent company. CG Ireland was owned by Avantha Group, an Indian conglomerate which ran into financial difficulties.

CG Ireland intends to rebrand and the rescue secures the employment of c.400 staff, most of who work in Cavan. The business will continue to be led by managing director Stephanie Leonard.

CG Ireland has been manufacturing in Cavan since 1977 and makes a range of distribution transformers, from small and large pole mounted units to ground mounted units for distribution networks, and a diverse range of industrial applications.

Annual turnover in the year to March 2020 was c.€70m. The company received taxpayer funding of €1.7 million in May 2019 through grant aid from IDA Ireland.

MML Growth Capital Partners Ireland receives funding from the Ireland Strategic Investment Fund, AIB and a number of international institutional investors. It has a mandate to invest in Irish SMEs and the CG investment is being led by Rory Quirke, Chris Walsh and Stephen Minogue.

Rory Quirke (pictured) commented: “CG Ireland has developed a strong reputation in a broad and important international market. It has expanded in recent years under the Irish management team, despite significant difficulties in its parent group. We are delighted to have partnered with CG Ireland’s management team and are keen to invest further to allow this business achieve its exciting potential.”

The investment is subject to Competition and Consumer Protection Commission approval.

 

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