Ion pays €110m for SWS group

Venture capitalist, Ion Equity, has bought alternative energy and business services co-op SWS for €110 million.

SWS chairman Raymond Collins announced the deal yesterday. The sale includes the co-op's natural resources, energy, waste and business services operations.

Neither side revealed a figure, but it is understood the price was about €110 million.

SWS, based in Bandon, Co Cork, has four divisions. These include a business contracting arm which provides services such as payroll, billing, human resources management and accounts payable, on a contract basis for a range of major clients. The section already employs 250 people and has announced its intention to increase this by 120.

Its alternative energy division owns wind farms with the capacity to produce 70 megawatts (mw) of electricity and has interests in similar projects under development which will bring its output to 200mw.

It also has a waste management business and a section that provides services to farmers such as cattle registration, which was not sold. Cork co-ops Dairygold, Lisavaird, Drinagh, Bandon and Barryroe own SWS. Management held 20 per cent.

SWS came on the market last month with a predicted €100 million price tag. Two weeks ago, the board announced it had shortlisted Ion Equity and utility group, One51.

The latter business, spun off from IAWS Co-op by Philip Lynch, made an abortive attempt to buy SWS last year. However, its €64 million bid ran aground in September 2005 after some SWS shareholders said they were not happy with the deal.

Ion chief executive Neil O'Leary welcomed news of the successful bid.

"The management and staff of SWS are leaders in their field and we look forward to a fruitful partnership working with them into the future," he said.