Dublin-based private equity firm Erisbeg has acquired a majority stake in Forte Pespa, which manufactures prefabricated apartment balconies.
Headquartered in Rathcoole, in Dublin, Forte Pespa is Ireland's leading full-service provider of pre-fabricated modular balcony solutions.
After today's deal, Forte Pespa plans to double its manufacture capacity to 6,000 balconies a year with a €6m investment in a new plant adjoining their existing factory in Dublin.
It also expects to add a further 40 Irish staff to the existing operations and confirmed that it will explore acquisitions in Ireland and the UK.
Forte Pespa was set up in 2016 by Oltian Devishi and his father, Agim. After today's deal, Oltian will continue as CEO, while Agim will step back from the business.
The new-build aluminium balcony market in Ireland which is worth in the region of €30-€35m a year and the market is expected to gain market share relative to steel balconies and grow by 30% year-on-year for the next three years.
Today's deal marks the third acquisition made by Erisbeg from its recently completed second fund - Erisbeg II LP.
The new fund raised €175m with all the investors in the company's first fund contributing again as well as a number of additional institutional investors from Norway, Belgium and The Netherlands.
AIB, which invested €10m in Erisbeg I LP, has also invested in the new fund as have Bank of Ireland and the Ireland Strategic Investment Fund (ISIF).
Under the terms of the deal, Maurice Tunney, a property and development veteran, will also take a stake in the business and has joined Forte Pespa as Chief Financial Officer.
Oltian Devishi said that from day one, it was clear that that Forte Pespa had chosen the right partner.
"This collaboration marks a significant milestone for our business as we look to accelerate growth both at home and in the UK. The outlook for apartment developments is transforming and we are very confident about future demand. We couldn’t be more excited about what lies ahead," he added.
Thomas Davy, who led the transaction for Erisbeg said that the housing crisis is well documented, and Forte Pespa, supported by Erisbeg, is looking forward to playing its part in addressing this challenge.
"We also recognise the important role Forte Pespa will play in remediating older balconies. We have great confidence in the management team’s ability to realise its ambitious growth potential and are excited to start working together," he added.
