MTM Engineering, a Co Meath-based data centre cable specialist, has acquired fibre-optic and structured cabling business CET Connect in a multimillion euro deal. While no financial details of the acquisition have been provided, MTM said the acquisition of the Clonmel and Dublin-based company will add €20 million in revenues to the business, bringing its total headcount to more than 650 people.
MTM made headlines last year when Dutch private equity firm Waterland bought a majority stake in the business in a deal reportedly worth €30 million. Waterland and MTM have ambitious growth plans for Ireland, and it is understood the acquisition of CET Connect will be the first of several forays into the market over the coming months.
Speaking to The Irish Times, MTM chief executive Brendan Mee said the deal was supported by Waterland and Bank of Ireland, which provided debt financing.
Despite a slowdown in acquisition activity across most markets over the past year, Mr Mee said MTM’s partners had taken “a very pragmatic approach” to the acquisition and its general strategy. “They know the market and they know the business and they know what the signals are and that’s one of the reasons we partnered with Waterland last year,” he said.
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The Slane-headquartered firm has worked on large data centre projects across Europe and has achieved “phenomenal” organic growth over recent years, Mr Mee said. Accounts for the group filed last September show that turnover ballooned from €22.6 million in 2020 to more than €40 million in 2021. “That was all organic growth,” Mr Mee said. “But this acquisition brings a whole new level of ability.”
CET specialises in the installation of structured cabling networks and has worked on projects including Swedish telecoms company Ericsson’s data centre in Athlone, Co Westmeath.
In a statement CET managing director Seán Maher said: “MTM Engineering is a great partner for our business, committed to long-term growth and development of the company, as well as our people. With a reputation for high standards, innovation, and trust-based relationships with clients, their values and approach are highly complementary to our business, and we look forward to working with Brendan and the team to continue delivering quality service standards to our clients.”
The Irish Times reported in January that Waterland has plans to at least double the €100 million it has invested in Irish companies since entering the Republic three years ago.
The Ireland Strategic Investment Fund (ISIF) has come on board as a “strategic investor” in the pan-European fund, according to Laura Dillon, managing director and principal of Waterland’s Irish office. However, it is understood that the ISIF investment amounts to just €10 million as all investors in the cash raise were scaled back as it was oversubscribed.
