In a year when Irish merger and acquisitions (M&A) activity increased by almost 5 per cent but fell in value by 61 per cent, one of the most notable features of the market was the return in force of private equity investors.
According to a report by Davy, the second-largest deal of 2024 was Swedish private equity firm EQT’s move to buy a majority stake in Limerick waste and recycling management software company ACMS, in a transaction that valued the business at €2 billion. Next on the list was American private equity firm Starwood Capital’s purchase of a 50 per cent stake in Dublin Echelon Data Centres, valuing the business at €1.6 billion.
The year’s fifth-biggest deal was US private equity group Blackstone’s acquisition of a 50.7 per cent stake in another data centre business, Winthrop Technologies, valuing the company at more than €800 million.
Another report by Irish private equity firm Renatus states that private equity investment in Ireland experienced remarkable growth during 2024, with activity growing by 124 per cent compared to 2023. Growth was driven by a combination of Irish and international private equity players. Overall, some 74 private equity transactions were completed in 2024, compared to just 33 in 2023.
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“There is a strong uptick of international private players, with 47 deals recorded this year, up from 17 in 2023. Private equity backed trade players have also been highly acquisitive. We’ve seen this first hand with two of Renatus’s three exits being to private equity backed trade players. This is also evident in the wider market and is particularly evident in the insurance space where 15 of the 22 insurance company deals were done by private equity backed trade players,” the report noted.
Notable private equity deals mentioned in the report include Renatus’s investment in EIDA and its exits from CRS and AQF Medical, Exponent’s investments in Chanelle Pharma, Ethos Engineering and Kingsbridge, Foresight Group’s investments in TES Group and DP Medical, 3i’s investment in Waterwipes, and Waterland’s investment in Bellew Electrical.
“Private equity continues to play an important role in the Irish M&A sector and there was a good volume of activity in 2024, both from Irish based players and overseas private equity houses,” says PwC Ireland corporate finance director Tom Noonan.
“From a standing start about 12 years ago, Ireland now has a healthy domestic private equity market which plays an important role in Irish M&A activity. They provide options for business owners looking to retire as well as those entrepreneurial-led businesses looking to expand into new markets. On the back of a several of successful exits a number of the Irish private equity funds raised new capital during 2024 which they will be looking to deploy in 2025 and beyond.”
Private equity buyers were particularly active in the technology, healthcare and renewable energy sectors during the past year.
“As a result of Ireland being the European HQ for many of the large global tech companies, we have produced a large number of start-up companies in the tech sector,” says Noonan. “The more successful start-ups attract PE investment which helps drive these companies to the next level. The healthcare sector is attractive to private equity firms due to our ageing population and innovation. Renewable energy investments align with global environmental goals, making them attractive for PE firms focused on sustainable investments.”
The outlook for private equity activity in the Irish market appears bright, according to the Renatus report. “We are confident that deal activity will remain strong, particularly for private equity,” it states. “Many private equity transactions involve entrepreneurs partially exiting – ‘taking chips off the table’ – while continuing to drive growth in their businesses. This type of deal was rare 15 years ago, as most transactions were traditional binary buy or sell trades. However, this shift highlights the evolving nature of M&A activity and the growing role of private equity in fostering long-term business growth.”
Noonan concurs: “The outlook for private equity in the Irish M&A market remains positive for 2025 and beyond, driven by continued economic growth and sectoral innovation,” he says. “Globally there is a view that there is a lot of unspent capital or ‘dry powder’ waiting to be deployed, particularly in the US.
“When this money starts to be spent Ireland will be a beneficiary of this, given the fact we are the only English-speaking country in the EU and we are European HQ for many of the largest global pharma and tech companies. These multinationals have created many domestic companies that service these businesses which are attractive investments opportunities.”
