Dublin-based investment fund Erisbeg has bought a majority stake in CHM Group, an Irish traffic management solutions provider.
Today's investment is the 29th completed by Erisbeg so far and continues its strong investment pace since 2017. It has invested in almost 30 SMEs since it was set up.
CHM was founded in 2001 by Barry Ennis and Niall Hughes, and has grown in the 24 years since with operations around the country.
It plays a central role in the evolution of temporary traffic management and motorway maintenance solutions in this time and as Ireland's infrastructure continues to expand, its services are critical to ensuring appropriate road safety and delivery of the country's critical infrastructural goals.
In January last year, Bryan Hosier was made Managing Director of CHM as founders Barry Ennis and Niall Hughes stepped back from operational involvement in the business.
After today's deal, both Mr Ennis and Mr Hughes will remain on the CHM board, to continue to support the business with their wealth of sectoral knowledge.
The company said the backing from Erisbeg will allow it to continue to grow strongly and to invest in growth initiatives across the UK and Ireland.
Completion of the deal is subject to regulatory approval from the Competition and Consumer Protection Commission.
"We are thrilled to have Erisbeg come on board to support the company's expansion plan. We have noted how closely Erisbeg work with management to support growth and we feel their expertise and financial support will allow the company to accelerate growth plans in a number of ways to create new opportunities for employees and clients alike," Barry Ennis and Niall Hughes said in a statement today.
Andrew Murphy, who led the transaction for Erisbeg alongside Ronan Daly and Donal Gallen, said the fund had been assessing this sector for the last 18 months and identified CHM as the leading player in the market.
"CHM plays a crucial role in keeping road users safe and supporting Ireland’s infrastructure development goals. We have great admiration of for what Barry and Niall have built and we are delighted that we can continue to rely on their expertise as board members for the next stage of the company’s growth," Mr Murphy said.
"We have great confidence in the management team's ability to realise ambitious growth potential and are excited to start to work together," he added.
