BA Com­po­nents gets a ma­jor cash in­jec­tion from H2 Eq­uity Part­ners

Sunday Independent (Ireland) - Business & Appointments - - FRONT PAGE - Gavin Mclough­lin

IN­VEST­MENT firm H2 Eq­uity Part­ners has made a “sig­nif­i­cant in­vest­ment” in Ty­ronebased BA Com­po­nents.

Cook­stown-based BA man­u­fac­tures kitchen and bed­room doors and fur­ni­ture com­po­nents. Founded by twin broth­ers Brian and Kieran Mc­cracken, it also has man­u­fac­tur­ing sites in Don­caster and Rother­ham in Eng­land.

The deal “will sup­port BA’S strat­egy of con­tin­ued in­vest­ment in our man­u­fac­tur­ing sites and bring­ing new prod­uct ranges to mar­ket and be­ing able to serve all parts of the mar­ket”, the com­pany said.

“The aim is to be­come Ire­land and the UK’S clear No 1 spe­cial­ist door and fur­ni­ture component man­u­fac­turer.”

Man­ag­ing di­rec­tor Brian Mc­cracken, pic­tured, told the Sun­day In­de­pen­dent that the com­pany started at­tract­ing M&A in­ter­est about two years ago.

“We had a few of­fers to sell the busi­ness but we didn’t want to do that. So we came up with a hy­brid if you like, which is where the H2 guys come in. They un­der­stand fam­ily busi­nesses, they un­der­stand the cul­ture. It was very much about what’s right for BA as a busi­ness, and Kieran and my­self... we still are ma­jor share­hold­ers in the busi­ness. We still are ac­tive and will be.”

It’s the third in­vest­ment made by H2’s lat­est fund, a €235m en­deav­our tar­get­ing in­vest­ments in UK and Ir­ish SMES. H2 in­vest­ment man­ager Cathal Tur­ley said the firm had ap­proached the Mc­crack­ens di­rectly be­cause of H2’s knowl­edge of the sec­tor.

“We vis­ited a lot of BA’S com­peti­tors as well and what we no­ticed straight away was that BA has some of the most ad­vanced fa­cil­i­ties within Ire­land and the UK. So we want to build upon that and con­tinue to in­vest in plant and ma­chin­ery, and make them the clear No.1 player in the mar­ket. That in­cludes in­vest­ing in new prod­ucts and bring­ing new prod­ucts to mar­ket, some­thing which BA does ev­ery year,” he said.

Fi­nan­cial terms were not dis­closed. BA has turnover of around £35m and earn­ings be­fore in­ter­est, tax­a­tion, de­pre­ci­a­tion and amor­ti­sa­tion) last year were around £7m, Mc­cracken said.

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