A leading property developer is believed to be behind the planned buyout of the Champion Sports retail chain for a reported €60 million.
Bernard McNamara and associates David Courtney and Bernard Doyle are understood to be among the backers of PCP One, the consortium that yesterday announced it was buying the sports equipment and clothing chain.
The group did not reveal the purchase price, but it is said to be in the region of €60 million.
Mr McNamara, Mr Courtney and Mr Doyle were investors in Select Retail Holdings, which bought the Superquinn chain in January 2005 for €450 million.
Mr McNamara is the principal of the building group of the same name and is well known in construction and property development circles. Champion Sports has 17 stores around the Republic, and is on target to hit sales of €70 million this year. Earnings are likely to be around 10 per cent of this figure.
Venture capitalist John Quinn and financier Bernard Somers, a director of AIB and Independent News & Media, are leading the consortium. Mr Somers is chairman and John Quinn is managing director of PCP One. PCP's statement said that a "small number" of high-profile Irish investors were backing the purchase.
It also stated that the Competition Authority had to approve the sale. This is not common in transactions involving private backers.
As deals involving businesses with annual sales of more than €40 million must be referred to the agency, this indicates that at least one of the investors controls a business on this scale.
According to the Companies' Registration Office records, two businessmen, Patrick McKillen and Paul McGlade, own 45 per cent each of Champion Sports Group. On this basis, they will split €54 million of the purchase price between them.
The chain's managing director, Liam Cunningham, owns the remaining 10 per cent.
Paul McGlade has a range of other interests including the Ely Medical Clinic, and various businesses in property, advertising, retail and restaurants. Patrick McKillen is mainly involved in property development.
The buyers will borrow the bulk of the purchase price through Anglo Irish Bank.
Mr Quinn told The Irish Times yesterday that PCP had lined up further finance to develop the chain. "We're looking at doubling the business over the next three years," he said.
"This is the best-known brand in its sector in Ireland, but it has only 17 stores; there's enormous potential there.
"They have the best sales per square foot of any of their peers. We're going to go after the Irish market in a serious way."
Mr Quinn pointed out that, while the chain had a good presence in the east and south of the State, it did not have a presence in many of the State's key population centres.
Mr Quinn recently left stockbroking and corporate finance firm Merrion Capital, and has also worked for Arthur Andersen and Bank of Ireland.
PCP is eyeing a number of future deals. The Champion Sports transaction took six weeks to complete.
Along with Anglo Irish Bank, the advisers on the deal were financiers Key Capital and NCB Corporate Finance, and law firms, Matheson Ormsby Prentice and A&L Goodbody.
