Cathexis Holdings LP, a multi-strategy holding company, has just announced that it has entered into a definitive agreement to acquire Irish based Jones Engineering Holdings International Limited for an undisclosed sum.
Jones Engineering is a leading mechanical, electrical and fire protection contractor operating throughout Ireland, the United Kingdom, Europe, the Middle East and South Africa. The Company offers a wide range of engineering and building services including design, project management and installation working with a blue-chip client base across 19 countries.
The Company, founded in 1890, is based in Ireland and retains a strong local heritage despite its global footprint. It has significant experience in a broad range of sectors including life sciences, data centres, industrial, food & beverage, offices and renewable energy with a track record of delivering high quality work, safely and on-time.
Jones Engineering had turnover for the financial year ended December 2021 in excess of €900m and employs over 4,600 people globally.
Strategic rationale for the transaction
Cathexis has identified Europe as a key investment target. The construction market has been central to the region’s economic success and Cathexis has strong conviction for the future growth of the industry. This follows Cathexis’ recent announcement of a definitive agreement to make a strategic investment in the Irish mechanical and electrical engineering contractor L. Lynch & Co Ltd (“Leo Lynch”) on 17 May 2022.
The acquisition of Jones Engineering provides a unique opportunity to invest in a leading international player in its sector and provides a significant platform for future growth across the region. Jones Engineering has track record spanning over 130 years, with experience gained through the completion of high-profile projects for blue-chip clients across many different sectors and geographies.
Cathexis is committed to the growth of Jones Engineering and Leo Lynch. The financial backing and capabilities of Cathexis will enhance the ability of both companies to expand their presence domestically and internationally.
Commenting on today’s announcement Cathexis Holdings LP said: “Cathexis has a strong conviction for the future growth of the construction industry, and Jones Engineering offers a unique opportunity to acquire a leading international mechanical, electrical and fire protection contractor in the sector. Supported by our deep financial resources and experience of scaling companies, we believe that further investment in both Jones Engineering and Leo Lynch will allow for growth both domestically and internationally. We recognise the strong Irish heritage of both businesses and Cathexis will respect this as it targets ambitious growth in the future”.
Commenting on today’s announcement, Eric Kinsella, majority shareholder and Chairman said: “Jones Engineering is proud of our heritage and of our reputation as a leading international engineering services contractor for major infrastructure projects in the pharmaceutical, IT and data centre industries. We have experienced strong and continuous growth over the past 30 years of our stewardship. We are excited by the many opportunities emerging for continued global expansion. We selected Cathexis as the new owner for the Group given our shared vision of growing our operations to take advantage of huge opportunities in Ireland and globally for the services we offer.
Jim Curley, Chief Executive Officer of Jones Engineering said: “We were impressed by the commitment of Cathexis and believe they are best placed to lead the company into the future for the benefit of both our employees and our clients. Our clients will benefit from the ability of the Company to leverage the financial strength and strategic capabilities of an international investor while our employees will benefit from Cathexis’ commitment to investment in the continued success and growth of the Company.”
Cathexis was advised by EY Corporate Finance and Pinsent Masons LLP. Jones Engineering was advised by McCann FitzGerald LLP.