Cathexis announces a majority investment in Leo Lynch

Cathexis Holdings LP (“Cathexis”), the US based investment house, has today announced that it has entered into a definitive agreement to make a strategic investment in the Irish based L. Lynch & Co Ltd (‘Leo Lynch’) for an undisclosed sum.

Leo Lynch is a specialist technical, mechanical and electrical engineering contractor providing a complete suite of services including design, project management and installation to a wide range of blue-chip clients. It has significant experience in a broad range of sectors including pharmaceutical, bio-pharmaceutical, medical devices, semi-conductor and data centres. The company operates from its headquarters in Dublin with sites located in Kilkenny and Kildare. The business is predominantly conducted on the island of Ireland however in the recent past the company has also completed contracts in the UK, Europe and the Middle East. Leo Lynch had a turnover for the financial year ended December 2021 of €44m, the company currently employs over 200 staff.

Cathexis has identified Europe as an investment target and within this region Ireland. The construction market has been central to both Europe and Ireland’s economic success and will remain an important part of these economies going forward. Leo Lynch provides an excellent opportunity for Cathexis to enter a highly attractive specialist sub-sector of the market and provides a strong platform for future growth.

Leo Lynch is a leading player in its sector with an established track record spanning over 60 years. This experience has been gained through the completion of high-profile projects for blue-chip clients across many different sectors.

The combination of Leo Lynch’s experience with the financial backing and capabilities of Cathexis will enhance the ability of the Company to tender for larger, more complex projects both domestically and internationally. This transaction will also ensure the long-term growth of a business with a strong tradition of delivering high quality work, safely and on time. The existing management of Leo Lynch believes in this success and has committed to staying with the business post completion of the investment.

Commenting on today’s announcement Cathexis Holdings LP said: “Leo Lynch, as a leading mechanical and electrical engineering contractor, fits seamlessly with the tradition of Cathexis. Via Cathexis with its deep financial resources and experience of scaling companies, Leo Lynch can further expand the scope of its offering to its established blue chip client base while providing these services across Europe through the Cathexis’ network. We always keep in mind that Leo Lynch is an Irish company and will remain an Irish company through which Cathexis will target future growth in Ireland.”

Commenting on today’s announcement Conor Lynch, Principal of Leo Lynch said: “The investment announced today by Cathexis in Leo Lynch provides an excellent opportunity for both the clients of Leo Lynch and the employees of the company. Our clients will benefit from the potential addition of new services and the ability of the company to leverage the financial strength and strategic capabilities of an international investment house. The employees will benefit from Cathexis’s commitment to scaling the Leo Lynch business and the opportunities this association will create for the business in Ireland and overseas. Most importantly, this deal will guarantee the continued success and growth of Leo Lynch into the future.”

Leo Lynch was advised by Nicholas O’Gorman of Anglesea Corporate Finance, a specialist M&A boutique based in Dublin, Ireland. Cathexis was advised by EY Corporate Finance. Completion of the deal is conditional on the approval of the CCPC as the transaction meets the relevant turnover thresholds for notification.