MML sells Sonas Bathrooms to management

The deal values the company in the EUR 50m region and the GP is believed to be making returns of around 3x money on invested capital, a source close to the situation told Unquote.

Sonas undertook a refinancing of part of the capital provided by MML in December 2019, the same source said. Clearwater International was mandated to run a sale process, which was in part motivated by CEO Dermot Usher's wish to move to a non-executive role.

The MBO was led by managing director Richard Sloan. Muzinich & Co has provided a combination of debt and equity to back the deal, including a growth capital line to fund organic growth and potential add-ons.

MML will roll over part of its stake in Sonas, retaining a minority stake in the new MBO.

MML Growth Capital Partners Ireland is a division of Ireland-headquartered MML Capital Partners. The firm acquired a minority stake in Sonas in November 2017 in a deal that valued the company in the EUR 20m-30m range, according to Unquote Data.

At the time, MML was deploying equity via its debut growth fund, which held a final close in November 2013 on its EUR 125m hard-cap. The fund deploys equity tickets of EUR 2m-12m, investing in Irish SMEs via minority equity and debt investments.

MML is currently deploying equity via MML Growth Capital Partners Ireland II, which held a final close in March 2021 on EUR 135m. The fund makes investments of EUR 5m-15m and follows the investment strategy of its predecessor.

Company
Founded in 1978 and headquartered in Dublin, Sonas supplies bathroom suites, furniture, fixtures and accessories. The company sells its products online and via a network of trade resellers. Sonas employs 90 staff and expects to post revenues of EUR 45m in 2021, versus EUR 24m at the time of MML's investment.

People
MML Growth Capital Partners – Neil McGowan (partner, co-head of investments).
Sonas Bathrooms – Richard Sloan (managing director); Darren Tierney (finance director); Ger Fahy (commercial director); Dermot Usher (non-executive director).
Muzinich & Co – Howard Mahon (director, pan-European private debt).

Advisers
Vendor – Clearwater International, John Sheridan (corporate finance); Byrne Wallace (legal); A&L Goodbody (legal); Mazars (tax); PwC (financial due diligence).
Equity & Debt – Mason Hayes & Curran, Jenny Ahern (legal); Grant Thornton, Michael Neary, Paul Murray (corporate finance).

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