Development Capital has announced a significant investment in Buttimer Engineering. Based in Cahir, Co. Tipperary, Buttimer Engineering is a diversified engineering business specialising in dry and liquid bulk materials handling systems and steel fabrication. It provides a full service offering to its customers including design, fabrication, procurement, installation, maintenance, project management and engineering services with 2024 projected revenues of €25 million.
With Development Capital’s support, Buttimer Engineering is forecasting significant growth in the next few years increasing revenues from €25 million to €65 million and a doubling of it’s workforce to over 400 (direct employees and sub-contractors) by 2028.
Buttimer Engineering is the 15th investment by Development Capital and its second in Munster, bringing the total value of its investments in Irish SMEs to date to over €125 million. The investment in Buttimer Engineering is the sixth by Development Capital Fund II, a €75 million fund. The other five investments by Development Capital Fund II are Spotlight Oral Care (Galway), Nomadic (Donegal), Wogan Build Centre (Louth), IP Telecom (Dublin) and Zartis (Cork).
Founded in 1978 by Buttimer Engineering Edward Buttimer, Buttimer Engineering has been operating for over 45 years and has grown to be a leading engineering business and Ireland’s only niche specialist in dry and liquid bulk materials handling systems with a strong reputation for delivering the highest quality standards, safely, on-time and on-budget for its client base of multinational and indigenous companies. This investment by Development Capital will support the company’s continued expansion in Ireland and internationally, through its offices and new fabrication facility in Middlesborough (UK), it’s office in Poland and through capitalising on existing alliances in the Middle East, global ports, and data centres.
Providing design, fabrication, procurement, installation, maintenance, project management and engineering services, Buttimer Engineering operates across a range of robust, growing, capital-intensive industries including Energy & Power Generation, Food & Beverage, Ports & Infrastructure, Process Industries, Data Centres, and Pharma. As a result, the company is well positioned to capitalise on underlying growth in the Irish and UK construction markets.
Led by Fergal Buttimer, CEO, along with an experienced senior management team, the company has achieved significant revenue growth in recent years and currently has a workforce of over 200 (including sub-contractors). In 2019, Buttimer Engineering opened a modern 3,580m2 premises in Cahir, Co. Tipperary which includes a head office, workshops and a large-scale dedicated stainless steel fabrication facility to service the Food & Beverage and Pharma sectors.
Buttimer Engineering is forecasting that more than 55% of its revenue growth will come from international markets driven by the following:
— An increasing demand for projects in the UK market where the UK Ports & Infrastructure network is nearing the end of its c. 25-year lifecycle and will require replacement or upgrading.
— Expansion of services to include an electrical division (headed by Strategic Development Director, David Phelan) that will initially service existing projects/clients, enabling the company to offer current clients a complete service offering
— Growth driven by increased activity in key sectors including Food & Beverage (changing consumer preferences & sustainability), Energy & Power Generation (UK and European data centre growth) and Ports (ageing and upgrade of existing assets).
As part of the investment, Andrew Bourg and Fran Stafford of Development Capital, will join the Board of Buttimer Engineering as Director and Observer respectively.
Announcing the new investment in Buttimer Engineering by Development Capital Fund II, Development Capital Partner and Co-Founder Andrew Bourg said: “We are delighted to complete this investment in Buttimer Engineering, our second investment in Munster. Buttimer Engineering is an established and fast-growing business with a clearly defined growth plan that is led by an experienced and ambitious CEO and senior management team. We spent a lot of time getting to know them and we are really looking forward to partnering and assisting them accelerate that growth potential.”
Fergal Buttimer, CEO of Buttimer Engineering said: “Being our first external investor this investment and collaboration with Development Capital marks a significant milestone for Buttimer Engineering and aligns perfectly with our long-term vision. We look forward to working with Fran, Andrew and the wider Development Capital team to drive further growth and to fuel our expansion plans.”
Fran Stafford, Investment Director of Development Capital, added: “We are really looking forward to working with Fergal and all the team at Buttimer Engineering who have developed a world-class engineering company serving a blue-chip customer base. With the investment and support of Development Capital, Buttimer Engineering is strongly positioned to maximise the favourable dynamics in its key end markets both domestically and abroad.”
Development Capital’s investment model is based on backing SME management teams by providing them with both the funding and experience to unlock and accelerate their growth potential.
