Keytech, the Limerick-based producer of electronic manufacturing products, is planning to expand its European operations following a €7.6 million (€5.99 million) investment by the venture capital group, Hibernia Capital Partners.
"We will aim principally to expand in Europe. We already have five plants in Ireland, but, with the funding, we can probably try and fast-track our expansion, possibly by buying either a plant or a company which would bring us additional customers," Keytech managing director Mr Ian Barry said.
The €7.6 million investment by Hibernia gives the venture capital group less than 20 per cent of Keytech, with most of the remaining shares held by Barry and his partner, Mr Dermot Coffey. Shannon Development has a 5 per cent stake in the company.
"We went for venture capital to get us to the next level. We have always been profitable and our turnover is heading towards €40 million," Mr Barry said. "We got where we are now through funds from a BES and from retained earnings, but we accepted we needed more fuel in our tank." He said that no consideration had been given to further funding, but added that a flotation of the company at some time in the future had not been ruled out. "Hibernia at some stage will be looking for an exit - it could be an IPO, a trade sale or a buyback. Nothing has been specified," he said.
Keytech has five plants in Ireland and employs 300 people, with a further 200 employed in plants in the US and Malaysia. The company provides a range of services to original equipment manufacturers, who outsource some of their requirements. Keytech products include sheet-metal enclosures and injection-moulded enclosures and components.
The €7.6 million investment is the sixth made by Hibernia since finalising its fundraising in 1998 and the 16th made by Reihill Venture Capital, which also includes Trinity Venture Capital.
"Keytech is a company with a first-class record of growth and a strong management team. Hibernia is looking forward to helping the management to maintain the company's growth momentum in the future," said Mr Luke Crosbie of Hibernia.
