Equity fund takes majority stake in Sam McCauley’s
PRIVATE equity fund, Carlyle Cardinal Ireland (CCI) has taken on a majority stake in Sam McCauley Chemists in a deal rumoured to be in excess of €50 million.
Last Thursday it was announced that CCI, which is a private equity fund established by The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group, had agreed an investment in Sam McCauley Chemists Limited, which has a store in Greystones.
The investment deal, the terms of which aren’t being disclosed, is believed to be in excess of €50 million and is expected to be completed before the end of the summer.
Having joined his father’s business in 1978, Sam McCauley has transformed it from a single family-owned chemist shop in Enniscorthy, to the third largest retail pharmacy group in Ireland. With 30 stores and almost 600 employees nationwide, the company had a turnover of €75 million in 2015.
Sam McCauley spearheaded the evolution of the company from a traditional pharmacy model to a customer-led health, wellness and beauty brand offering a unique combination of prestige products and services.
Sam McCauley will continue as a significant shareholder of the company and remain on the board of directors alongside Ian Daly and Jonathan Cosgrave from CCI.
Upon completion of the investment, Patrick McCormack will step down as Managing Director of the company following more than 25 years’ service, to pursue other business interests.
Mr McCormack joined Sam McCauley’s as a pharmacist in 1991 and was appointed Managing Director in 2007. His tenure as managing director has seen the company expand store numbers nationwide and launch a successful online health and beauty offering.
Tony McEntee, one of Ireland’s most experienced retailing executives, and the former CEO of Allcare Pharmacy Group and Finance Director of Lifestyle Sports, will join the company as CEO following the completion of the investment.
Sam McCauley said: ‘The health and well-being of our customers is at the heart of everything we do at Sam McCauley’s. We have maintained that customer focus and high degree of service as the business expanded in size over the years through a continuous focus on introducing new products and services.
‘The investment from CCI allows us to continue this growth as an Irish-owned business and will accelerate future innovations for the benefit of our customers and for the development of our loyal employees.
‘I thank Patrick for his commitment, dedication and long service to the business, and for the significant growth that the company achieved under his leadership. I look forward to working with Tony and CCI during this exciting next stage in the company’s evolution.’
Jonathan Cosgrave, Managing Director, The Carlyle Group said: ‘We and the Sam McCauley management team have the collective ambition and capital to double the size of the company – through a combination of organic and acquisitive growth – over the next three-to-five years to maintain Sam McCauley’s as the largest Irish-owned pharmacy group.’
Ian Daly, Director, Cardinal Capital Group, said: ‘We are delighted that our first Irish retail sector investment is in an outstanding business servicing both patient and consumer health and wellness needs. The Sam McCauley brand is synonymous with high levels of trusted customer service and replicating this bond between its customers and employees across an expanded retail network is a key part of our investment.’
The investment is subject to approval from the Competition and Consumer Protection Commission (CCPC).