Quinn management buy out attempt 'not dead in the water'

A multi-million euro management buy out of part of the Quinn Group could still be on the cards for later this year after an 'exploratory' bid was rejected. An informal bid, worth in the region of €200 million, was tabled by seven members and former members of the 12 strong board of directors. According to a senior source, the directors involved were those over the construction industry supplies (CIS) sectors and also involved former Quinn Group chief executive Liam McCaffrey. The bid, which would have been subject to due diligence, was supported by KKR & Co, a New York based private equity firm, specialising in leveraged buy outs. However, the ambitious move was shot down at a board meeting. The reason given for rejecting the informal bid was that the restructuring of the company's finances wasn't complete, and that while that remains ongoing no offer could be considered. A member of the board of directors tendered his resignation in response, which was accepted and a replacement was swiftly announced in an email circulated to staff. The (CIS) directors involved are viewed as close allies of Sean Quinn, but our source denied Mr Quinn played any role in the attempted management buy out (MBO). According to The Anglo-Celt's source the MBO was motivated by a "fairly serious downturn" in some divisions of the group's CIS business from April. He said that a percentage of the long standing and loyal customers had ceased dealing with the Quinn Group as they felt uncomfortable about the "combination of the Anglo involvement and how the takeover occurred" - namely the sidelining of Sean Quinn. He insisted that the MBO could yet be revived when the restructuring of the company's finances are finalised. "It should be completed by mid-October. We would be hopeful that sense would prevail then, and it's not dead in the water I believe," he said. He added that the move was the "only logical solution to the difficulties" and would increase "job protection in its current location" in Cavan and Derrylin. A spokesperson for Quinn Group said: "No bid has been received from any source for the businesses or for any part of them. An exploratory approach was made in relation to part of the businesses but it was made clear by the Quinn Group Board that, in line with the commitments already made, the businesses are not for sale. "Our absolute focus and determination is to continue to provide quality products and services to our customers, to expand our businesses and to protect the jobs in them."