New owners say 400 jobs saved as CG Power bought over

A deal has been struck which sees Cavan based factory CG Power Systems bought over by new owners and safeguards the jobs of the 400 staff.

MML Growth Capital Partners today announced that it has agreed a deal to acquire CG Power, which manufacture distribution transformers from their site on the Dublin Road.

The deal sees MML as the largest single equity holder, and retain the current management team. CG Ireland was until now part of the Avantha Group, an Indian headquartered conglomerate with a diverse portfolio of power related products and solutions. It is to be acquired from liquidators Kris Van den Berghen, Elke Van Weerdt and Yves Desutter, appointed to CG Ireland’s direct parent CG Power Systems Belgium NV, following difficulties in the broader Group.

The business will continue to be led by existing management team, headed up by Managing Director, Stephanie Leonard.

“We’re delighted to receive this backing from MML”, commented Stephanie Leonard, MD, CG Power Ireland. “First and foremost, it provides the business with stability, following a period of uncertainty with difficulties in the Avantha / CG Group.

"It gives the business a strong institutional backer, providing security to our dedicated team and confidence to our valued employees, customers and supplier base. We intend to use this backing to invest further in our Cavan facility and broaden our international product and market expansion.”

In a statement issued on behalf of MML they said that the investment will enable CG Ireland to be rebranded and to "continue to service its broad international customer base with its best in class product portfolio from its Cavan facility".

"Furthermore, it secures the employment of its 400 primarily Cavan based employees. It is anticipated that the change of ownership will facilitate significant investment into the Cavan plant, something that has been difficult to achieve in recent years."

However, they also report that the business achieved revenues of c. €70m in the year to March 31, 2020.

CG Ireland has been manufacturing in Cavan since 1977 having been established by Pauwels Trafo of Belgium. The Pauwels Trafo business was acquired by CG, part of the Avantha Group in 2005. CG Ireland manufactures a range of distribution transformers, from small and large pole mounted units to ground mounted units for distribution networks and a diverse range of industrial applications – electrical vehicle charging stations, battery storage, solar, tidal, and both onshore and offshore wind farms.

CG Ireland is working with all leading electrical network owners (utilities) across Ireland, UK & Belgium, including ESB Networks. It has successfully expanded into continental Europe in recent years and expects to accelerate this growth following this investment.

The investment will be made from MML Growth Capital Partners Ireland, a growth fund supported by the Ireland Strategic Investment Fund, AIB and a number of international institutional investors. The fund is dedicated to backing small and medium sized businesses on the island of Ireland. The MML investment is led by members of its Ireland team, including Rory Quirke, Chris Walsh and Stephen Minogue.

“CG Ireland has developed a strong reputation in a broad and important international market”, commented Rory Quirke, Co-Head of Investments, MML Growth Capital Partners Ireland. “It has expanded in recent years under the Irish management team, despite significant difficulties in its parent group. We are delighted to have partnered with CG Ireland’s management team and are keen to invest further to allow this business achieve its exciting potential.”

The investment is subject to approval from the Competition and Consumer Protection Commission (CCPC).