Private Equity Propels DNA Food Tracing
IdentiGEN, the former TCD campus company established in 1996, has made wealthy men out of its two founders, but not before they took on board private equity capital from MML Growth Capital Partners in 2015 to ramp up operations.
IdentiGEN's unique DNA technology famously exposed the fraudulent substitution of horseflesh for European beef in 2013. In August 2020, the farm-to-table genetic tracing company was sold to MSD Animal Health, a subsidiary of US pharma giant Merck.
Deal consideration was not disclosed, though press comment centred on a transaction value of c.€50m. That would have included repaying €11.7m advanced to
IdentiGEN by MML in April 2015. The annual interest rate on that borrowing was 8% and 5%, with the interest charge capitalised every year. Five years after forwarding the cash, MML’s loan value had grown to €15.5m.
Founders Ronan Loftus (54) and
Ciaran Meghan (50) each owned c. 40% of the business acquired by MSD. By going down the private equity route, and before that borrowing from some shareholders, they avoided dilution of their equity stake. Both men are still in place at IdentiGEN, which is based at a business park on Carysfort Avenue in Blackrock, and has offices in Wales, Germany and the US. American beef giants like Tyson and multinational retailers like Tesco are now numbered among the company's prestige clients.
With MML’s funding, IdentiGEN increased the staff number from 32 people in 2014 to 77 people last year. The company produces a unique DNA passport for every beef animal slaughtered in Switzerland, and also provides the resources which enable the Food Safety Authority of Ireland to prevent food fraud.