Carlyle Cardinal Ireland, a private equity fund formed by The Carlyle Group and Cardinal Capital Group, has agreed to acquire Duke Street’s controlling stake in Payzone Ireland. No financial terms were disclosed. Based in Dublin, Payzone is a provider of multi-channel consumer payments in Ireland.
Duke Street has agreed to sell its controlling investment in Payzone Ireland, the largest provider of multi-channel consumer payments in the country, to Carlyle Cardinal Ireland (CCI), the private equity fund founded by The Carlyle Group and Cardinal Capital Group.
Mid-market specialist Duke Street became a majority shareholder in Payzone Group, the pan-European parent of the Irish business, in 2010. It took the AIM-listed company private and restructured what was then a heavily indebted diversified group to enhance growth within each of the divisions.
It was expected that Duke Street’s exit would be effected by a phased series of disposals. In 2013, after a long and complex process, Duke Street agreed to sell Payzone unit Cashzone, an operator of ATMs in the UK and Germany, to global payment services provider Cardtronics. The deal left the remaining Payzone operations debt-free while returning 1.3x investors’ original investment.
Payzone’s Swedish and Greek businesses were subsequently successfully exited, leaving Payzone UK and Payzone Romania as the two remaining businesses in the original Payzone Group. Both are unaffected by the sale in Ireland.
Commenting on the sale, Charlie Troup, Partner at Duke Street, said:
“We are proud to have worked with Payzone’s talented management team through the journey of restructuring the group, growing and selling its Cashzone ATM operations, strengthening the market position of the remaining Payzone businesses and generating excellent returns for Duke Street’s investors. This hard work has delivered an attractive business with significant further growth potential, whilst delivering excellent returns for our investors. We see CCI as well qualified to back management for the next phase of growth.”
About Payzone Ireland
Payzone Ireland is the largest consumer payments network in the country with over 7,000 retail agents which process a variety of electronic transactions services, including mobile phone top ups, debit/credit card transactions; M50 motorway toll payments; Leap travel cards, local property tax payments, parking fees, pre-paid utility and parcel collection services. Based in Sandyford, Dublin the company employs over 70 people in Ireland. Payzone’s focus is on delivering leading edge payment services that drive greater efficiency for clients and increased revenues for its retail partners. As industry leader, Payzone’s technology credentials, capabilities and expertise are a particular strength of the business.
About Duke Street and Tikehau
Duke Street is a leading operationally focused European mid-market buyout group, founded in 1988. It is currently investing across five sectors: healthcare, business services, consumer, financial services and industrials/engineering. Duke Street has a proven model of value creation by successfully transforming businesses through implementing operational change and buy-and-build, having made nearly 60 bolt-on acquisitions for its portfolio companies.
Tikehau Capital, a leading alternative asset manager investing across public and private debt, equity and real estate with more than EUR 5 billion of assets, is a cornerstone shareholder in Duke Street. Tikehau Capital operates via third-party investment funds and own funds, and has offices in London and Paris. The partnership between Tikehau Capital and Duke Street allows them to leverage their sector knowledge, origination and underwriting capabilities and effectively address capital needs in mid-market companies. Tikehau Capital has more than 100 employees in offices in Paris, Brussels, London and Singapore.
For more information visit www.dukestreet.com and www.tikehaucapital.com