Jones Engineering acquired in a deal worth over 1 billion euros

Jones Engineering acquired in a deal worth over 1 billion euros

The Irish company Jones Engineering has been acquired by the American group Cathexis Holdings in what is believed to be a deal worth more than 1 billion euros.

The Group’s chairman and majority owner Eric Kinsella, as well as CEO Jim Curley, who is the company’s second largest shareholder, will leave the company after the deal.

During its 132-year history, the group has been led by only three people. Harry O’Neil guided the company from its founding in 1890 to 1947, before his apprentice Chris Jones took the lead in 1948 and led the company until 1993. Mr Kinsella has led the group ever since.

Jones Engineering is a global company that focuses on large-scale infrastructure projects in the pharmaceutical, healthcare, IT and data center industries. It generates about half of its revenue from abroad.

The group employs 4,600 people. The latest report for Jones Engineering Holdings Ltd shows that it had a turnover of 726 million euros in 2020, with a profit before tax of just under 60 million euros. The company paid a dividend of EUR 35 million during the year.

In a statement announcing the deal, the company said it had a turnover of over 900 million euros for the year ended December 2021.

Cathexis is a multi-strategic holding company based in Houston, Texas, with investments ranging from real estate and energy to private equity. Cathexis is the family office of the company’s billionaire CEO William Harrison.

According to the Mass Investor website, Harrison is about 30 billionaire, whose father was the late Texas rancher and billionaire Bruce Harrison.

The Harrison family’s fortune was created in the early 20th century by William Harrison’s great-grandfather, oilman and country baron Dan Harrison.

William Harrison made LA real estate news when he bought a $ 110 million ($ 102 million) Malibu home in 2018. He also bought an 83,400-acre Colorado ranch that had been listed for $ 105 million.

The value of the investment in Jones Engineering was not disclosed, but in connection with the size of the company and other deals made by Cathexis, it will probably be over 1 billion euros.

Cathexis’ share commitments range from $ 3 million for high-value niche businesses, to more than $ 100 million for the acquisition of established companies or the financing of infrastructure development.

It is understood that Cathexis tried to acquire the Jones business last year, but the approach was rejected.

Following that, the US company took a majority stake in another Irish group, Leo Lynch, a specialist technical, mechanical and electrical contractor who employs more than 200 people between its Dublin headquarters and its Kilkenny and Kildare facilities.

It provides a range of services including design, project management and installation to blue-chip customers in the pharmaceutical, biopharmaceutical, medical equipment, semiconductor and data center industries.

Cathexis has highlighted Europe as an investment destination, where Leo Lynch gives the company the opportunity to enter a specialized sub-sector of the construction market in Ireland. This gave the American company a foothold in the sector to tender for larger, more complex projects both nationally and internationally.

Leo Lynch’s work is predominantly in Ireland, although it has done some work abroad. Leo Lynch’s existing management has committed to staying in business once the investment is completed.

Following the collapse of the Cathexis bid to acquire Jones Engineering last year, a number of senior executives left their roles at Jones to take up positions at Leo Lynch.

There are implicit talks between Cathexis and Jones Engineering about a possible takeover resumed in recent weeks, and a breakthrough followed.

In a company-wide email on Friday, seen by The Irish Times, Kinsella and Curley told staff at Jones Engineering that they wanted to inform them of an “important announcement” to be made on Friday.

They said they had considered the group’s future “in recent months”, and that they had tried to “reduce our daily involvement in the company”.

“We have chosen Cathexis as the effective new owner of the business because they value our 130-year legacy and recognize our group’s success,” they said, adding that it was the beginning of a “new chapter” for the company.

“It’s the right time for Jim and me to leave and let a new owner lead the next phase of expansion and growth for Jones Engineering,” they said.

“The transaction will take a few months to complete. Jim has agreed to stay for a few months to help with the transition to a new management team.”

Together with his wife Barbara Kinsella, Mr Kinsella has previously made significant donations to Trinity College Dublin in the areas of student studies and engineering scholarships.

#Jones #Engineering #acquired #deal #worth #billion #euros

Leave a Comment

Your email address will not be published.